Oracle Seeks $15 Billion in Major Bond Sale
▼ Summary
– Oracle is seeking to raise $15 billion through corporate bond sales, which may include an uncommon 40-year bond.
– This fundraising effort follows Oracle’s recent historic AI infrastructure agreement with OpenAI to supply $300 billion worth of compute.
– Questions have emerged regarding how both Oracle and OpenAI will finance their massive compute deal.
– Oracle is also reportedly negotiating a separate $20 billion compute agreement with Meta.
– Oracle announced that Safra Catz is transitioning from CEO to executive vice chair of the board, with Clay Magouyrk and Mike Sicilia becoming co-CEOs.
Oracle is reportedly preparing a substantial $15 billion corporate bond sale, a major financial move that arrives on the heels of its landmark artificial intelligence infrastructure partnership with OpenAI. According to a Bloomberg report citing individuals familiar with the matter, the offering could be structured in as many as seven parts. One notable component under consideration is a 40-year bond, an unusually long maturity for corporate debt that signals a long-term capital strategy.
This significant fundraising effort emerges just weeks after news broke of a massive agreement between Oracle and OpenAI. The deal involves Oracle supplying the AI research organization with cloud computing resources valued at a staggering $300 billion. The sheer scale of that arrangement immediately prompted industry speculation about the financing mechanisms for both parties involved.
Adding to the picture of aggressive expansion in the AI sector, Oracle is also said to be engaged in discussions with Meta. Those talks reportedly concern another enormous compute deal, this one potentially worth $20 billion. These back-to-back negotiations with leading AI entities underscore Oracle’s determined push to become a dominant force in providing the computational backbone for the AI industry.
The company also recently announced a significant leadership transition. After an 11-year tenure as Chief Executive Officer, Safra Catz is moving into the role of executive vice chair of Oracle’s board of directors. Stepping into the CEO position will be a new leadership duo: co-CEOs Clay Magouyrk and Mike Sicilia. This executive reshuffle coincides with a period of ambitious growth and substantial financial activity for the technology giant.
(Source: TechCrunch)
