Oracle Raises $18 Billion in Second-Largest Bond Sale of 2024 as AI Boom Drives Massive Infrastructure Spending
Summary
Oracle raises $18 billion in 2024's second-largest bond sale with nearly $88 billion in investor demand, issuing debt including a rare 40-year bond to fund massive AI infrastructure spending for clients like OpenAI and Meta as cash flow turns negative for the first time since 1992.
Key Points
- Oracle raises $18 billion in the second-largest bond sale of the year with demand reaching nearly $88 billion from investors
- The technology giant issues debt across six tranches including a rare 40-year bond to fund massive cloud infrastructure spending for AI boom customers like OpenAI and Meta
- Oracle's cash flow turns negative for the first time since 1992 as the company faces upfront costs from major cloud deals, with analysts projecting need for $65 billion more debt through 2028