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

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

Key Takeaways Oracle shares rose on Monday after the company said it planned to raise up to $50 billion through debt and equity sales this year to fund its AI data center buildout.Oracle is dramatically increasing its infrastructure spending to meet an AI-driven surge in demand for cloud computing and take on incumbents Microsoft,

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.

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

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

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 Corp. plans to raise $45 billion to $50 billion this year through a combination of debt and equity sales to build additional cloud infrastructure capacity, reflecting the scale of financing needed to feed AI’s growth.

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