Oracle’s Debt-Fueled AI Investment Strategy Under Scrutiny

about 1 month ago

Tom Keen with Paul Sweeney and Lisa Matteo

"Oracle shares are down as much as 3% following the kick off of one of the biggest bond sales of the year, with $18 billion in U.S. investment grade bonds in six parts, including a rare 40-year bond. The proceeds will be used for capital expenditures, future investments or acquisitions and general corporate purposes, as the company ramps up spending to fulfill massive cloud infrastructure deals including with OpenAI and Meta."

Oracle (ORCL) is issuing a significant $18 billion bond sale, which is part of its strategy to invest heavily in cloud infrastructure and AI-related deals. Despite shares down by 3%, the commentary highlights that the debt issuance is structured to support long-term AI and cloud ambitions, though it also points to near-term pressures like negative free cash flow as the company spends aggressively.

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