Oracle stock seesaws
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Oracle plans to raise between $45 billion and $50 billion this year as it looks to fund its huge bet on cloud computing.
Oracle's 5-year credit default swaps are tumbling after the company announced a $50 billion debt and equity financing plan.
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.
Oracle shares were higher on Monday after the company disclosed plans to raise between $45 billion and $50 billion in funding.
The capital injection aims to satisfy surging cloud demand from heavyweight clients including OpenAI, Meta, Nvidia, AMD, TikTok, and xAI.
Oracle (NYSE:ORCL) looked like it was destined to be the next $1 trillion company last year before things made an abrupt turn. The stock has nearly halved since then, with the market cap now below $470 billion.
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The Oracle/TikTok partnership has since been formalized through the establishment of the TikTok USDS Joint Venture LLC, which was finalized last week, enabling continued operations in the country with TikTok hosted on the Oracle cloud platform. Oracle is a 15 percent owner.