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

The week after promising to cap new borrowing at $20 billion until the end of its 2030 financial year, Oracle launched plans to borrow all that in one go.

In notices to investors on Monday, Big Red said it is offering bonds worth $10 billion together with $10 billion in shares of its common stock.

It said it could use the money for working capital, capital expenditures, contractual obligations, acquisitions, dividends, stock repurchases, debt repayments and other matters. The most likely candidate is financing datacenters, as the tech giant is in the middle of capex binge which saw $55.7 billion spent in fiscal year 2026, which ended in May. The company plans to spend between $90 billion and $95 billion in fiscal 2027.

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Last week, the company told investors it would limit new borrowing to $20 billion until the end of its financial year 2030, which ends in May that year. It promised to get more revenue from customers by charging for AI usage on top of seat-based subscriptions.

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CFO Hilary Maxson also told an analysts' event that Big Red would look to borrow the $20 billion during the remainder of fiscal 2027, which ends in May, implying there would be no new borrowing for the following two years.

Maxson confirmed this was correct. “That's a real commitment. We don't expect other forms of structured financing or other things using our Oracle credit out in the market,” she said.

In July, Oracle said it could face more than $100 million a year in financing costs to guarantee the power commitments behind a nearly 1 GW datacenter campus it is developing in Wisconsin with Vantage and OpenAI.

In October, Oracle reportedly sent a force majeure notice to a Blue Owl Capital subsidiary developing Project Jupiter in New Mexico. Bloomberg reported that Oracle was seeking to defer payments if the campus failed to come online as planned, rather than withdraw from the project. Oracle says the development remains on schedule.

In September last year, Oracle's valuation rocketed after it boasted $455 billion in RPOs, $300 billion of which turned out to be for OpenAI, all largely based around leasing datacenters for AI compute. ®