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Oracle Seeks to Raise $18 Billion in Debt to Fund AI Cloud Push

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Oracle is planning to raise $18 billion in debt, according to a regulatory filing on Wednesday, as it accelerates investment in cloud infrastructure to meet soaring demand from artificial intelligence clients.

The enterprise software and cloud services giant has been expanding its capital spending to deliver on major contracts, including agreements with OpenAI, which are expected to drive significant growth in its cloud business.

According to a pricing term sheet filed with the U.S. Securities and Exchange Commission, Oracle will sell the debt in six tranches.

In a separate filing, the company said proceeds could be used for general corporate purposes, including stock buybacks, debt repayment, or acquisitions, in addition to infrastructure investment.

The debt sale highlights how rising AI adoption is reshaping the priorities of major tech firms, with Oracle joining a growing list of companies tapping capital markets to finance the costly buildout of hyperscale data centers.

Elon Musk’s xAI Secures $10 Billion in Funding for AI Expansion, Morgan Stanley Confirms

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Elon Musk’s artificial intelligence venture, xAI, has successfully raised $10 billion—split evenly between debt financing and strategic equity investment—as it ramps up efforts to scale infrastructure and compete in the intensifying AI arms race, Morgan Stanley confirmed Monday.

According to a statement posted on X, the $5 billion in debt funding includes a mix of secured notes and term loans and was oversubscribed, drawing in prominent global debt investors. Meanwhile, xAI also completed a separate $5 billion equity raise, with Morgan Stanley describing the capital as “strategic”—a likely reference to targeted investments from industry or institutional players.

Earlier reports by Reuters indicated that xAI was on track to finalize the debt round despite tepid early interest. Bloomberg had separately reported that the AI firm was also pursuing an additional $4.3 billion equity round on top of the debt raise, and had even floated a potential $20 billion equity raise that could push the company’s valuation as high as $200 billion. Current investor estimates place xAI’s valuation at over $120 billion.

The new funds will support the development of AI models, the expansion of data center infrastructure, and growth of xAI’s flagship Grok platform, a generative AI chatbot positioned to rival OpenAI’s ChatGPT and Google’s Gemini.

xAI has not issued a public statement, and declined to comment when contacted by Reuters outside of business hours.

The massive funding round highlights investor confidence in Musk’s ability to build a major player in the AI space, leveraging assets across his business empire, including Tesla, SpaceX, and X (formerly Twitter).