Oracle Plans $15 Billion Corporate Bond Sale Amid Major AI Compute Deals
Key Points
- Oracle aims to raise $15 billion via a corporate bond sale.
- The bond offering may include up to seven tranches, one possibly a 40‑year bond.
- The financing follows a $300 billion AI compute deal with OpenAI.
- Oracle is in talks with Meta>Meta for a $20 billion compute partnership.
- CEO Safra Catz will transition to executive vice‑chair of the board.
- Clay Magouyrk and Mike Sicilia will become co‑CEOs of Oracle.
Oracle is reportedly preparing a $15 billion corporate bond offering that could include up to seven tranches, one of which may be a 40‑year bond. The move comes weeks after the cloud‑infrastructure giant signed a massive AI compute agreement with OpenAI valued at $300 billion and entered talks with Meta on a $20 billion deal. Oracle also announced a leadership transition, with CEO Safra Catz moving to executive vice‑chair and co‑CEOs Clay Magouyrk and Mike Sicilia taking the helm.
Bond Sale Plans
Oracle is reportedly looking to raise $15 billion through a corporate bond sale, according to Bloomberg sources. The offering could be structured in up to seven separate parts, and one tranche is said to be an uncommon 40‑year bond.
AI Compute Agreements
These financing efforts follow Oracle’s recent announcement of a historic AI infrastructure deal with OpenAI. The agreement, described as a $300 billion compute commitment, positions Oracle as a key provider of AI‑related cloud resources. In addition, the company is reportedly in discussions with Meta>Meta about a $20 billion compute deal, further expanding its AI partnership portfolio.
Leadership Transition
At the same time, Oracle confirmed a leadership change. Long‑time chief executive Safra Catz will shift from the CEO role to serve as executive vice‑chair of the board after more than a decade at the helm. She will be succeeded by co‑CEOs Clay Magouyrk and Mike Sicilia, who will jointly lead the company moving forward.
Market Implications
The bond sale aims to fund Oracle’s aggressive expansion in AI and cloud infrastructure, providing the capital needed to support the sizable compute contracts with OpenAI and potentially Meta. Analysts view the move as a strategic effort to secure long‑term financing for high‑growth initiatives while capitalizing on the booming demand for AI‑driven services.