Oracle’s AI spending blows past estimates, raising worries over growing debt
Oracle on Wednesday forecast capital spending plans for fiscal 2027 above Wall Street estimates, as the cloud computing company said it will also raise more debt in 2027, reflecting the staggering scale of cash burn needed to build out its AI infrastructure.
Its shares fell 8.9% in extended trading, after Oracle said it expects to raise nearly $40 billion through a combination of debt and equity financing in 2027. This includes its previously announced $20 billion at-the-market equity issuance.
Oracle, which has major deals to build data centers for customers such as Meta Platforms and OpenAI, is working to position itself as a major rival to cloud leaders such as Amazon. com and Microsoft.
