The software giant wants to expand its cloud infrastructure, even as its stock trails and investor concerns deepen.

Oracle Corporation’s $50B capital raise funds AI data centers as revenue/EPS surge forecasts show ORCL undervalued despite debt. Click for this ORCL update.

The capital injection aims to satisfy surging cloud demand from heavyweight clients including OpenAI, Meta, Nvidia, AMD, TikTok, and xAI.

Oracle's new financing efforts come after Wall Street showed skepticism around its costly build-out of data centers and other AI infrastructure.

As of Friday, Oracle shares had dropped more than 50% from last year's high, but were once again rising by Monday morning.

Oracle's 5-year credit default swaps are tumbling after the company announced a $50 billion debt and equity financing plan.

By Rashika Singh Feb 2 (Reuters) - Oracle shares gained 2% on Monday after Wall Street analysts said the software company's $50 billion fundraising plan allays worries over its ability to finance a massive data-center expansion with OpenAI.

Oracle (NYSE:ORCL) announced on Friday that it expects to raise $45 billion to $50 billion in cash this year through a balanced mix of debt and equity financing. The funds will support expansion of its Oracle Cloud Infrastructure (OCI) to deliver on massive contracted demand for AI and cloud capacity from key customers including Advanced

The database and cloud software company assured investors that NVIDIA and OpenAI's supposedly lofty deal won't help or hurt its business.

Oracle may take drastic cost-cutting steps to improve cash flow stress, according to CIO, citing TD Cowen’s assessment. In the cost-cutting move, the software giant may reduce its workforce by 20,000 to 30,000 for AI data-centre expansion. The job cuts is subjected to generate $8 and $10 billion in cash flow.