Oracle Shares Sink 7% After $20 Billion AI Funding Raise

Is the AI boom starting to strain even its biggest builders? Oracle shares fell about 7% on Monday after the company filed to sell $10 billion of common stock and $10 billion of senior notes to fund its artificial intelligence buildout. The raise uses up the $20 billion cap on new capital that Oracle set through fiscal 2030.

The cap was announced at an Investor Day the previous Wednesday, so the company reached it within days. Total debt including leases stood at $169.1 billion at the end of August, compared with $75.9 billion in fiscal 2022. S&P cut Oracle to BBB-, one notch above junk, in July. Investors noticed quickly.

Free cash flow was negative $23.7 billion in fiscal 2026, which helps explain investor unease about funding data centres with borrowed money and new shares. The sale shows how expensive the race for AI capacity has become and how closely markets are watching balance sheets as spending commitments keep growing across the technology sector.