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Oracle Eyes $15B Bond Sale Amid $300B OpenAI Deal and Leadership Shake-Up

Prime Highlight

  • Oracle is planning a $15 billion bond sale shortly after striking a $300 billion AI infrastructure deal with OpenAI.
  • The move comes as Oracle undergoes leadership changes, with Safra Catz stepping down and new co-CEOs Clay Magouyrk and Mike Sicilia taking charge.

Key Facts

  • The bond sale could be split into up to seven parts, including a rare 40-year bond, according to Bloomberg.
  • Oracle is also in talks with Meta for a potential $20 billion compute deal, strengthening its AI infrastructure role.

Background

Oracle is reportedly preparing to raise $15 billion through a corporate bond sale, just weeks after signing a major AI infrastructure deal with OpenAI. Bloomberg, citing sources, reported that the sale could include up to seven different parts, and one of them may be an unusual 40-year bond.

The planned bond sale follows Oracle’s reported agreement to provide OpenAI with $300 billion worth of computing resources. Industry observers and analysts are questioning how both companies will finance such a large AI deal, and they believe Oracle could use the bond sale as one way to raise the funds.

TechCrunch reached out to Oracle for comment, but the company has not provided details about the bond sale. In addition to the OpenAI deal, Oracle is reportedly in discussions with Meta for a potential $20 billion compute agreement, further underlining the company’s growing role in AI infrastructure.

The financial news comes amid leadership changes at Oracle. On Monday, CEO Safra Catz announced she would step down after 11 years in the role and transition to executive vice chair of Oracle’s board. She will be replaced by co-CEOs Clay Magouyrk and Mike Sicilia, who will now lead the company’s operations.

The bond sale may provide Oracle with more capital to fund its expansion in AI services and cloud infrastructure, especially as large-scale compute resources demand increases at a swift pace.

Oracle has a new leadership team and the ambitious AI deals, which make it a prospective provider of AI infrastructure, and increase its funding to support its future projects.