Oracle plans billion-dollar bond to strengthen cloud infrastructure

The software giant Oracle plans to acquire the substantial sum of $15 billion through the sale of corporate bonds, Bloomberg News reports, citing informed sources. This financial maneuver aims to satisfy the significant demand for AI-supported cloud infrastructure. Oracle's shares reacted to this news with a decline of nearly 2 percent. An official statement from the company is yet to be released, despite a request from Reuters. Currently, Oracle is intensifying its investments to execute significant cloud infrastructure contracts, including with the emerging AI company OpenAI. These partnerships are expected to considerably increase Oracle's capital expenditures. The bond sale will occur in up to seven tranches, with the exact amount not disclosed in a regulatory document filed on Wednesday. The proceeds from the bond sale could be used for general corporate purposes, such as share repurchases, repayment of existing debt, or potential acquisitions.