Oracle’s stock fell after the company signaled a sharp increase in capital spending, up 40% this year, largely to build out AI-focused data centers. The move underscores Oracle’s ambition to catch up with hyperscalers like Amazon,Microsoft, and Google in supplying computing power to AI leaders such as OpenAI—but it’s spooking the market.
Investors are uneasy about the balance sheet impact. Long-term debt has jumped 44%, amplifying concerns about execution risk, returns on investment, and timing. The strategy is clear: scale fast or fall behind in the AI infrastructure race. The risk is just as clear: heavy upfront costs today, with payoff dependent on winning workloads tomorrow. In short—big bet, big capex, zero patience from the market.
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