Oracle issues $2.5 billion investment-grade bonds for artificial intelligence-related infrastructure.

Oracle issued $25 billion investment-grade bonds on Monday to provide funding for the infrastructure construction of its artificial intelligence projects. This is set to become the largest investment-grade bond issuance in the United States since Meta Platforms raised $30 billion at the end of last year. Sources familiar with the matter revealed that initially the software giant was expected to borrow between $20 billion and $25 billion, and was also planning to raise a similar amount through equity sales. Due to lack of authorization to speak publicly, the sources requested anonymity. Fund management institutions view the company's decision to combine bond issuance with equity sales as a positive development, as the market had concerns about the company's debt levels and the potential artificial intelligence bubble. Barclays analysts Andrew Keches and Remy Neuhaus wrote in a report on February 2nd that Oracle's plan to use "equity rocket launchers" will significantly reduce its credit downside risk. Moody's rating confirmed Oracle's debt rating as Baa2, the second lowest investment-grade level.