Oracle's AI spending blows past estimates, raising worries over growing debt - Reuters
Oracle's AI spending blows past estimates, raising worries over growing debt Reuters
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"Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI, and others."
— Larry Ellison , Executive
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<a href="https://news.google.com/rss/articles/CBMilwFBVV95cUxNQlVzRm94YkVRaVFDQWVGN2dKZUhOMGIwVUI0dFlBZW5mZm5Ed0xzaWpMdXBKZUdRV0ZTd2tVR09Ddmo1YXl2SWtzazZQRGpnTExHYUZNb0oxX2xzeEloVU1mMVJuS29jTXpwOW9nLURVTFZ6S0d0VEhOZWU2SnpEdjlLcUxWNHJCUVphTUJrZUVmYU9FcWVB?oc=5" target="_blank">Oracle's AI spending blows past estimates, raising worries over growing debt</a> <font color="#6f6f6f">Reuters</font>
Oracle's capital spending for 2026 surpassed projections, leading the company to plan additional debt issuance in 2027 to support its AI infrastructure expansion.
Investors have directed over $255 billion into AI hyperscalers in 2026, with Oracle among the leading beneficiaries, raising concerns about a potential AI bubble and the sustainability of such massive investments.
Oracle's stock declined nearly 3% ahead of earnings, with investors concerned about the company's rising capital expenditures and debt obligations amid the AI cloud boom.
Oracle is preparing to raise up to $50 billion through debt and equity to expand its AI data centers, amid scrutiny over its aggressive AI spending and the impact on its financial health.
Oracle's stock dropped 11% after its Q2 2026 earnings report, as a $12 billion AI spending plan spooked investors, wiping $80–100 billion from Oracle’s market cap and affecting the crypto market.
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