Oracle sued by bondholders over losses tied to AI buildout

NEW YORK: Oracle was sued on Wednesday by ‍bondholders who say they suffered losses because the company chaired by billionaire Larry Ellison ⁠concealed its need to sell significant additional debt to build out its artificial intelligence infrastructure.

The proposed class action was filed in a New York state court in ‌Manhattan on ‌behalf of investors who said they bought $18 billion of senior notes and bonds that Oracle issued ‌on September 25, shortly after the software and cloud computing company signed a $300 billion, five-year contract to supply Sam Altman’s OpenAI with computing power.