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As Oracle makes a 'will not do' pledge to worried investors; analysts say company is trying to show that

Oracle is pursuing a $20 billion capital raise to fund AI infrastructure investments while its shares trade near $116 after a $10 billion stock sale. The stock is on track for its worst annual performance since 2001, pushing Larry Ellison out of the world's top 10 billionaires. Management has issued a "will not do" pledge to reassure investors, though analysts question whether the AI spending will generate sufficient returns. The database business remains profitable but faces pressure to prove the AI bet will pay off.

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  • ✓ Oracle is seeking to raise $20 billion to fund AI ambitions.
  • ✓ Oracle sold $10 billion of stock at $116 per share.
  • ✓ Oracle stock is on pace for its worst year since 2001.
  • ✓ Larry Ellison fell out of the top 10 billionaire rankings as Oracle shares plunged.
🛡️ Source Corroboration: 6 independent reporting domains (85% confidence) ⏱ Read time: ~2 min

What changed

Oracle announced a $20 billion fundraising target for AI initiatives while completing a $10 billion share offering at $116 per share.

Live updates

  1. Oracle targets $20B raise for AI as stock slides to worst year since 2001

    Oracle is pursuing a $20 billion capital raise to fund AI infrastructure investments while its shares trade near $116 after a $10 billion stock sale. The stock is on track for its worst annual performance since 2001, pushing Larry Ellison out of the world's top 10 billionaires. Management has issued a "will not do" pledge to reassure investors, though analysts question whether the AI spending will generate sufficient returns. The database business remains profitable but faces pressure to prove the AI bet will pay off.

    Why it matters

    Oracle's aggressive AI infrastructure buildout requires massive capital at a time when investors are scrutinizing return on investment across the sector. The stock's 2026 decline reflects skepticism that database strength alone can justify the valuation premium attached to AI ambitions. Ellison's wealth drop underscores the magnitude of the share-price correction.

    What is confirmed

    • Oracle is seeking to raise $20 billion to fund AI ambitions.
    • Oracle sold $10 billion of stock at $116 per share.
    • Oracle stock is on pace for its worst year since 2001.
    • Larry Ellison fell out of the top 10 billionaire rankings as Oracle shares plunged.
    • Oracle management made a "will not do" pledge to worried investors.

    Still unconfirmed

    • Analysts say Oracle is trying to show the AI bet will not disappoint.
    • Oracle is priced for the AI bet to disappoint with a database business underneath.

    What to watch next

    • Details and pricing of the $20 billion capital raise
    • Q3 FY2027 earnings for AI revenue trajectory signals
    • Analyst revisions on Oracle's AI capital efficiency
    Sources used for this update (6)
    1. WSJ — Oracle Looks to Raise $20 Billion to Fund AI Ambitions
    2. The Times of India — As Oracle makes a 'will not do' pledge to worried investors; analysts say company is trying to show that
    3. Yahoo Finance — Oracle Just Sold $10 Billion of Stock at $116 a Share. Is the Stock a Buy at That Price?
    4. Forbes — Larry Ellison Falls Out Of Top 10 In Billionaire Rankings As Oracle Plunges
    5. Seeking Alpha — Oracle: Priced For The AI Bet To Disappoint, With A Database Business Underneath (ORCL)
    6. The Motley Fool — Oracle Stock Is on Pace for Its Worst Year Since 2001. Here's What Followed Its Only 2 Worse Years.
    confidence 85%
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