Oracle files to raise $20 billion and Meta seeks up to $25 billion in bonds to pay for AI
Two CNBC reports show how the biggest AI spenders are now funding the buildout with new stock and debt, and how investors and ratings firms reacted.
Oracle filed with the SEC on Monday, November 2, to sell $10 billion in common stock and $10 billion in senior notes to help pay for its AI buildout. The plan had been outlined at its investor day the week before, but the shares still fell 8.8%. Oracle has said this $20 billion is all the new capital-market funding it plans for its fiscal 2027 to 2030 investment cycle, leaning instead on vendor financing, customer-provided hardware and prepayments.
On Tuesday, Meta sought to raise $20 billion to $25 billion in a bond sale, about two-thirds in dollars and one-third in euros, according to people familiar with the matter cited by CNBC. The sale came days after S&P Global Ratings revised Meta's AA- outlook to negative, citing its heavy capital spending and negative free cash flow. Meta has said it plans to raise $95 billion in total, including $35 billion in public stock offerings. Its shares rose 2.7% on Tuesday after a losing October.
-
Corporate bond
After exploring Meta bond sale targets up to $25 billion for AI spending , for a primer on how these companies are borrowing, see Corporate bond.
Wikipedia explains a corporate bond as long-term debt a company issues to raise money for operations, acquisitions or expansion, promising to repay with interest.
Wikipedia · Wade · 5 min
0