Oracle's Debt Balloons to $108 Billion as AI Spending Soars

Oracle's Debt Balloons to $108 Billion as AI Spending Soars

Key PointsOracle's debt is rising as cash flies out the door to fund AI data centers.The company already has a debt-heavy balance sheet, and it will need to borrow more to fund its AI infrastructure contracts.Investors have soured on the stock as debt concerns intensify.10 stocks we like better than Oracle › Tech giant Oracle (NYSE: ORCL) has racked up remaining performance obligations, which represent future revenue expected to be generated fro…

Here’s what Oracle’s soaring infrastructure spend could mean for enterprises

Oracle’s aggressive AI-driven data center build-out has pushed its free cash flow from a modest deficit of $2 billion in the quarter ended August 31 to a staggering $10 billion shortfall in the quarter ended November 30, creating structural financial pressure that could translate into higher subscription costs and stricter contract terms for customers, analysts say. “Oracle customers face a clear and escalating risk of price increases because th…