Oracle to raise funds up to $50 billion for cloud infrastructure amid layoff reports — Here’s what you need to know
US-based technology giant Oracle Corp. plans to raise revenues of $45 billion to $50 billion in 2026 to create additional capacity for its cloud infrastructure investment plan through a combination of debt and equity sales, the news agency reported. Bloomberg On Monday, January 2, 2026.
The tech company’s plans to invest in additional capacity come amid growing demand from the company’s customers, including AMD, Meta, NVIDIA, OpenAI, TikTok and xAI.
“Oracle is raising money to build additional capacity to meet contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others,” the company said in a statement.
Fundraising details
Oracle’s announcement comes at a time when investors are cautious about bets on AI-related investments, according to the agency report.
The company plans to raise half of the funding round through issuances of common stock and common stock, including mandatory convertible preferred securities, and an at-market equity program of up to $20 billion.
The rest of the fundraising plan is to raise money from a single bond issue in early 2026. The news also emphasized that Oracle borrowed $18 billion in 2025, one of the largest corporate bond offerings of the year.
The report also noted that a key aspect of Oracle’s cloud investment is its contract with OpenAI, which has committed to spending approximately $300 billion to rent servers from Oracle. While OpenAI is not profitable, the lack of a clear timeline for meaningful returns raises concerns about financial distress from large capital expenditures.
Layoffs at Oracle
Oracle is also reportedly planning to cut up to 30,000 jobs to fund its AI data center plans, according to the CIO, citing a research report by investment bank TD Cowen.
The company will also reportedly sell off some of its operations as US banks pull back from investing in the company’s AI data center expansion. “Both equity and debt investors have raised questions about Oracle’s ability to fund this growth,” TD Cowen said in its report.
Although the company has not released an official statement regarding this development, the worst impact of layoffs amid Oracle’s restructuring plans will reportedly be on employees working in data center-related roles and non-core units.
According to the news agency’s report, Oracle shares have lost more than 50 percent from their record price on September 10, 2025, indicating a market value of over $460 billion amid concerns.
MarketWatch data shows Oracle shares were trading at $172.74 as of Monday’s premarket session on Wall Street, up nearly 5% from $164.58 at the previous close.
