AI in action · Markets
Oracle and Meta Tapped Markets for AI Cash in One Week
Oracle filed for $20 billion of stock and bonds and Meta sought up to $25 billion in debt in the first week of November, as AI spending outran cash flow.
Two of the largest AI spenders went to capital markets within 24 hours of each other. On Monday, November 2, Oracle filed preliminary plans with the SEC to raise $20 billion, split evenly between $10 billion of common stock and $10 billion of senior notes, Anadolu Agency reported; the shares fell about 4.5% after the announcement. On Tuesday, November 3, Meta was marketing a bond sale of $20 billion to $25 billion, about two-thirds in dollars and one-third in euros, CNBC reported, its second large bond deal of the year after a $25 billion sale in April.
The pricing showed what the market asked in return. Oracle sold 86.2 million shares at $116, an 11.2% discount to its October 30 close of $130.67, and its notes, in six tranches maturing between 2029 and 2046, carried coupons of about 7% to 8.65%, according to GuruFocus. Oracle had told investors at its October 28 investor day that it would cap new capital-markets funding at $20 billion through fiscal 2030, excluding refinancing, so this deal uses the whole allowance at once; it reported about $125 billion of borrowings at the end of August.
Meta's numbers explain why a company with a huge advertising business is borrowing. It raised its 2026 capital-spending forecast to $135 billion to $145 billion, and its free cash flow was negative $2.12 billion in the third quarter, putting it alongside Alphabet and Amazon in reporting a negative figure, CNBC noted. S&P Global Ratings moved Meta's AA- rating outlook to negative on October 30, citing uncertainty about its capital spending and negative free cash flow. Meta has also set out plans to raise $95 billion of equity: $35 billion through underwritten offerings first, then $60 billion through an at-the-market programme.
Funding the AI build-out is moving from cash flow to markets. A year ago the largest spenders paid for data centres out of operating income; now the most aggressive are issuing stock at a discount, paying high-yield-style coupons on investment-grade names or accepting a weaker rating outlook. Oracle's shares lost about 11% over the week, according to TIKR, and its credit-default swaps had already hit records in October.
For bondholders, a capped, one-off raise like Oracle's is easier to model than an open-ended programme, and Meta's rating remains high. For shareholders, a $95 billion equity plan means dilution unless the spending earns returns quickly. Nvidia's results on November 17 will show how much of this money is still turning into chip orders.
Sources: Anadolu Agency — Oracle plans $20 billion in stock, bond sales to fund AI expansion (Nov 2, 2026); CNBC — Meta bond sale targets up to $25 billion for AI spending (Nov 3, 2026); GuruFocus — Oracle announces $20 billion stock and bond offering to boost AI infrastructure