The A.I. Race Grows: ORCL $38B Debt Offering for Stargate Data Center

Core Viewpoint - Oracle is planning a significant $38 billion debt offering to finance the construction of two data centers in collaboration with OpenAI as part of its Stargate initiative, which has positively impacted its stock price, showing a 70% increase this year and over 135% since April's lows [1][4][3]. Company Developments - The debt offering is set to be the largest deal for AI infrastructure, with JP Morgan Chase and Mitsubishi UFJ Financial Group leading the financing [4]. - The financing will be divided into two senior secured credit facilities: a $23.25 billion package for a data center in Texas and a nearly $15 billion facility for a project in Port Washington, Wisconsin [5][4]. - The Wisconsin data center is expected to deliver up to 4.5 gigawatts of additional Stargate capacity, with construction slated to begin soon and completion projected for 2028 [6][5]. Employment Impact - The construction of the Wisconsin site, referred to as Lighthouse, is anticipated to create over 4,000 construction jobs and 1,000 long-term jobs upon completion [7]. Strategic Investment - Oracle's broader strategy includes a $500 billion investment in AI infrastructure alongside OpenAI, indicating a strong commitment to expanding its capabilities in this sector [8]. Financing Structure - The loans for the data centers will be structured as interest-only during the construction phase, transitioning to amortization once operations commence [9].