Oracle gobbles $20 billion borrowing limit a week after setting it
In the middle of a datacenter capex binge, vendor promises no more borrowing until the end of 2030
After setting a $20 billion borrowing limit just a week prior, Oracle announced plans to borrow the full amount in a single transaction. The tech giant is offering $10 billion in bonds and $10 billion in shares of its common stock to meet this borrowing requirement. Oracle can utilize the funds for various purposes such as working capital, capital expenditures, contractual obligations, acquisitions, dividends, stock repurchases, debt repayments, and other matters.
The majority of the company's recent spending has been on datacenters, with $55.7 billion spent in fiscal year 2026, ending in May. Oracle anticipates increasing its capital expenditures to between $90 billion and $95 billion in fiscal year 2027. In a recent investor meeting, Oracle's CFO, Hilary Maxson, reaffirmed the $20 billion borrowing limit until the end of fiscal year 2030, which concludes in May.
She indicated that the company would likely deplete the $20 billion during the remainder of fiscal 2027, signifying no additional borrowing for the subsequent two years. Maxson emphasized that this commitment is "real" and that Oracle does not foresee other forms of structured financing or alternative uses of its credit in the market.
In July, Oracle disclosed that it could face financing costs exceeding $100 million annually to secure power commitments for a nearly 1 GW datacenter campus it is developing in Wisconsin with Vantage and OpenAI. Additionally, Oracle reportedly sent a force majeure notice to a subsidiary, Blue Owl Capital, working on Project Jupiter in New Mexico.
According to Bloomberg, Oracle sought to defer payments if the project failed to launch as planned, rather than abandoning the initiative. Despite these challenges, Oracle maintains that the development remains on track. In September, Oracle's market value surged following the announcement of $455 billion in revenue obligations, $300 billion of which belonged to OpenAI, primarily driven by leasing datacenters for AI compute.
Written by urgent.news from The Register's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
