Oracle Leverages Debt to Fuel AI Ambitions

about 1 month ago

SPEAKER_01

"There is no way for Oracle to pay for this with cashflow. They must raise equity or debt to fund their ambitions. I believe Oracle has just sparked the elusive animal spirit to life. I believe Oracle is the quarter that we will remember in history. Oracle is going to go negative free cashflow to win, and it's likely that incumbents will respond."

Oracle is breaking its historical reliance on self-funded investments by tapping into debt markets in order to aggressively fund its AI initiatives. The commentary suggests that this move may trigger a broader shift, forcing technology incumbents to significantly increase their capital expenditure to remain competitive.

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