Oracle(US:ORCL) Hua Er Jie Jian Wen·2026-02-02 01:12Core Viewpoint - Oracle plans to raise up to $50 billion by 2026 through bond and equity financing to expand its cloud infrastructure to meet the demands of major clients, amidst concerns regarding its debt burden and heavy asset transformation strategy [1][4]. Group 1: Financing Plan Details - Oracle intends to raise approximately $22.5 billion to $25 billion through equity-related instruments and common stock issuance, including mandatory convertible preferred securities and a market equity program of up to $20 billion [2]. - The remaining funds will be sourced from the bond market, with a planned single bond issuance in early 2026, estimated at $22.5 billion to $25 billion [2]. Group 2: Client Contracts and Market Position - The funds will specifically be used to expand cloud infrastructure capacity to fulfill contracts with major clients, including key players in the AI industry such as AMD, Nvidia, OpenAI, TikTok, and Meta [3]. Group 3: Debt Concerns and Market Criticism - Oracle currently has approximately $95 billion in outstanding debt, making it one of the largest corporate bond issuers outside the financial sector, raising concerns about its financial sustainability [4]. - Critics, including notable short-seller Michael Burry, have expressed concerns over Oracle's aggressive asset expansion and fragile financial structure, labeling it as a "pure AI bubble vehicle" [4][5]. - Burry argues that Oracle's high-risk transformation under heavy debt could lead to significant vulnerabilities if AI demand does not meet expectations, contrasting it with tech giants like Microsoft and Google that have stronger financial cushions [5][6].