--- title: Oracle files to sell $20B in new stock, bonds to finance... description: Oracle filed to sell $10 billion in new common stock and $10 billion in senior notes to fund its AI buildout. The move was already outlined at last week's... canonical: https://daily.dev/posts/oracle-files-to-sell-20b-in-new-stock-bonds-to-finance-ai-buildout-w4v2xnnsc twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Oracle files to sell $20B in new stock, bonds to finance AI buildout | daily.dev og:description: Oracle filed to sell $10 billion in new common stock and $10 billion in senior notes to fund its AI buildout. The move was already outlined at last week's... og:url: https://daily.dev/posts/oracle-files-to-sell-20b-in-new-stock-bonds-to-finance-ai-buildout-w4v2xnnsc og:image: https://api.daily.dev/og/posts/w4V2XnNSC.png og:image:alt: Oracle files to sell $20B in new stock, bonds to finance AI buildout og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Oracle files to sell $20B in new stock, bonds to finance AI buildout **[Hacker News](https://daily.dev/sources/hn)** · 3 min read · 0 upvotes · 0 comments ## Summary Oracle filed to sell $10 billion in new common stock and $10 billion in senior notes to fund its AI buildout. The move was already outlined at last week's investor day, but shares still tumbled 8.8% on Monday. Oracle capped additional capital market funding at $20 billion for its fiscal 2027 to 2030 investment cycle and forecast at least $225 billion in revenue by fiscal 2030. The company plans to turn to vendor financing, customer-provided hardware and customer prepayments to help it transition to positive free cash flow, which it expects in the second half of 2028. Oracle's stock is down 33% in 2026, and S&P downgraded it to BBB- in July. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did Oracle's stock drop after it announced a $20 billion stock and bond sale? Oracle shares fell 8.8% even though the $10 billion stock and $10 billion senior notes sale had already been outlined at its investor day the prior week. Analysts noted the filing matched what was previewed, suggesting the drop reflected broader investor concern over Oracle's debt load and AI spending rather than new information. _daily.dev readers weighing AI infrastructure bets can follow how Oracle's financing moves ripple through the market._ ### How much debt does Oracle have and what is its current credit rating? Oracle had $125.34 billion in debt as of August 31, mostly in senior notes. S&P downgraded Oracle to BBB- in July, one notch above high-yield (junk) status, and its five-year credit default swap spread rose 265% in one year to 292, a level more typical of high-end junk bonds. _Track Oracle's credit trajectory on daily.dev if you're assessing AI infrastructure financing risk._ ### When does Oracle expect to reach positive free cash flow from its AI investments? Oracle expects to reach positive free cash flow in the second half of 2028. To get there, it plans to rely on vendor financing, customer-provided hardware, and customer prepayments rather than solely on capital markets, after capping additional capital market funding at $20 billion for its fiscal 2027 to 2030 investment cycle. _Follow daily.dev for updates on how major cloud vendors fund their AI capacity buildouts._ ## Community take How the wider developer community reacted, aggregated from 1 discussion and 100 comments across hackernews (as of 2026-11-03). **TL;DR:** Commenters are broadly skeptical of Oracle's debt-and-equity-fueled AI bet, questioning its lack of proprietary AI IP, GPU obsolescence risk, and heavy leverage, while a side debate rages over whether the new share issuance actually dilutes existing shareholders. **Sentiment:** 5% positive · 20% mixed · 75% skeptical **The case for** - Some argue Oracle's core database/ERP business is still fundamentally healthy and could sustain the company even under financial stress. - A few note the market reaction may be overblown since the fundraising plan was already previewed at the investor day. **The pushback** - Oracle is seen as providing commodity compute to AI labs without owning differentiating IP, making it vulnerable to being undercut. - Facilities and GPUs financed now risk being obsolete before they're fully monetized as Nvidia's hardware improves rapidly. - Heavy reliance on debt and share issuance while ERP revenue is reportedly being deprioritized is viewed as a risky trade-off. - Some see Oracle's political ties (e.g., Stargate/OpenAI deal) as propping up a shaky business rather than reflecting real demand. - Many expect a severe downside, including potential bankruptcy or shareholders being wiped out while bondholders take a haircut. **By community** - hackernews (heated): Discussion mixes technical skepticism about Oracle's AI strategy and GPU risk with a long, contentious side-argument over whether new share issuance is truly dilutive, plus widespread hostility toward Oracle/Ellison. **Hottest debate:** Whether issuing new shares to raise capital actually dilutes existing shareholders' value and voting power, or just reflects a fair trade for new capital. **Open questions** - Will Nvidia's buyback/upgrade program actually offset the risk of GPU obsolescence for data centers built now? - What happens to Oracle's enterprise customers and integrations if the company faces a severe financial collapse? - Is Oracle's AI capacity being built for its own services or purely as commodity infrastructure for OpenAI and others? **Highlights** > Oracle does not have any proprietary IP that OpenAI depends on. That means Oracle is providing commodity services to OpenAI. AI hardware is advancing rapidly. If NVIDIA's next generations deliver radically more tokens per watt and per dollar, an Oracle facility designed, financed, and contracted around an older GPU generation can be overtaken before it is fully online or fully monetized. That's a big risk. And to finance this they are making deep cuts to the ERP business where Oracle does have proprietary IP. > — [flowerlad on hackernews · 10 comments](https://news.ycombinator.com/item?id=50343349) > I'm not really sure they have thought this through. Or at least their solution has been to essentially insulate the company and even the physical building from the debt used to buy the GPUs. These SPVs typically lease the building and secure the debt to the GPUs themselves so if it all goes pear-shaped, it'll be the debtholders who are left holding the bag, priamrily. But I have questions: 1. How often do GPUs fail? I've seen figures that this is as high as 9% annual failure rate for DC GPUs; 2. How easy is it to get replacement stock? At what cost? 3. If you trade in, what value do you get for your GPUs? 4. What is the availability like? How does NVidia decide who gets the next wave of GPUs? That's NVidia's big power here. It's a bit like how Boeing and Airbus decide on customer order and if you upset them, you may lose other orders. This happened to Qatar Airways over the A380 [1]. 5. How long are the current form factors and interfaces going to last? How long before the power requirements get larger than what DCs are currently built for? Blackwell GPUs use a lot more power than, say, 2 or even 1 generation ago did. GPUs are a huge cost factor, allegedly more than 50% of the cost of a data center [2]. If you take a bath on the trade in and are forced to do it because you can't compete with the current generation's performance-per-watt, that's not a good situation to be in. [1]: https://www.arabnews.com/business/qatar-airways-in-mystery-a... [2]: https://orennia.com/insights/what-it-actually-costs-to-build... > — [jmyeet on hackernews](https://news.ycombinator.com/item?id=50343934) > They're not worth more. The number of shares is increased by the amount that was issued. So that larger amount of equity is split among more shares. A simple example: Current equity of $100B, 100 shares outstanding. Each share is worth $1B, with 1% of voting power. Then we issue $10B of equity via 10 shares. Now we have equity of $110B, with 110 shares outstanding. Each share is still worth $1B, except each share now has 1/110 of voting power, instead of 1/100. Each share now only controls 0.91% of the company. Their ownership has been diluted. > — [donkers on hackernews](https://news.ycombinator.com/item?id=50345058) > This came up in the last discussion: The TL;DR is that shareholders go to zero, bond holders take a haircut and then own "new Oracle" (Opacle?) that can generally sustain itself with revenues from agressive JDK audits, RDBMS licenses, and ERP/PeopleSoft. (Opacle == One Poor A-hole Called Larry Ellison) > — [coredog64 on hackernews](https://news.ycombinator.com/item?id=50344298) > 1.) The Fed is tightening because of hot and worsening inflation 2.) The bubble pop doesn't pose systemic risk to the US economy 3.) AI companies hardly employ any Americans (that's the entire point) 4.) There's already direct precedent for letting the tech bubble pop (dotcom) 5.) AI is politically toxic with voters 6.) The bubble has been widely known to the public for YEARS while AI companies consciously ignored the risks and warning signs 7.) No amount of bailouts will fix a business model that sells $100 bills for $1 8.) The bailout would cost $30T (two thirds of the current US debt) 9.) The US government is broke at these debt to GDP levels 10.) A bailout is wishful thinking from AI bagholders > — [fhrjfjdjfn on hackernews](https://news.ycombinator.com/item?id=50345948) **Source threads** - [hackernews](https://news.ycombinator.com/item?id=50342284) · 136 points · 100 comments ## Similar posts on daily.dev - [Oracle spent $55.7B on data centres, plans to raise $40B more](https://daily.dev/posts/oracle-spent-55-7b-on-data-centres-plans-to-raise-40b-more-xvutkeyri) · The Next Web · 0 upvotes · 0 comments - [Oracle may slash jobs to keep AI datacenter plans on track](https://daily.dev/posts/oracle-may-slash-jobs-to-keep-ai-datacenter-plans-on-track-amxo8pwey) · The Register · 1 upvotes · 0 comments - [Oracle’s 21,000 layoffs help drive its debt-fueled AI investments](https://daily.dev/posts/oracle-s-21-000-layoffs-help-drive-its-debt-fueled-ai-investments-6qfkpsy5e) · Ars Technica · 1 upvotes · 0 comments --- Tags: [#oracle](https://daily.dev/tags/oracle), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure) [View this post on daily.dev](https://daily.dev/posts/oracle-files-to-sell-20b-in-new-stock-bonds-to-finance-ai-buildout-w4v2xnnsc) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Oracle files to sell $20B in new stock, bonds to finance AI buildout","url":"https://daily.dev/posts/oracle-files-to-sell-20b-in-new-stock-bonds-to-finance-ai-buildout-w4v2xnnsc","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/oracle-files-to-sell-20b-in-new-stock-bonds-to-finance-ai-buildout-w4v2xnnsc"},"datePublished":"2026-11-02T21:16:40.362Z","dateModified":"2026-11-03T00:18:03.561Z","description":"Oracle filed to sell $10 billion in new common stock and $10 billion in senior notes to fund its AI buildout. 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