Oracle $20 billion AI financing raise: what 7 percent to 8.65 percent bond coupons say about the cost of the AI buildout

Oracle priced a $20 billion debt and equity raise on Monday, November 2, to fund its AI and cloud infrastructure buildout, and the deal is the clearest number yet on what the next leg of the AI capex boom actually costs. The company sold 86.2 million shares at $116 each, an 11.2 percent discount to the prior close, for roughly $10 billion. It priced another $10 billion of bonds across five fixed-rate tranches with coupons from 7 percent to 8.65 percent, maturing between 2029 and 2046. Shares fell 8.8 percent on the day to $119.22, and ORCL is down about 39 percent year to date.

Oracle priced 86.2 million shares at $116, an 11.2 percent discount, for roughly $10 billion of equity. The company…