{"slug": "oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance", "title": "Oracle Upsets the Market With Even More AI Spending and Debt Issuance", "summary": "Oracle announced Wednesday it will raise an additional $40 billion in debt and equity financing next fiscal year, adding to the $43 billion in debt it already raised, as the company ramps up spending on AI data center infrastructure. The company's capital expenditures reached $55.7 billion in the past fiscal year, exceeding prior estimates, and its free cash flow is expected to remain negative until 2030. Investor concerns over Oracle's mounting debt and uncertain returns on AI investment sent its stock down more than 10% in after-hours trading, raising fears that any disruption to its buildout or a failure by key customer OpenAI to pay could trigger broader economic fallout.", "body_md": "The AI industry’s effort to build as many data centers as possible has spurred [trillions in global debt](https://gizmodo.com/the-ai-arms-race-joins-forces-with-the-literal-arms-race-fueling-348-trillion-in-debt-2000726772).\n\nIf that worries you, prepare to get even more worried. Oracle said in its earnings report on Wednesday that it would raise another $40 billion in the next fiscal year through debt and equity financing, on top of the $43 billion in debt that it raised in the past fiscal year.\n\nWith well above $100 billion, Oracle is one of the top debt issuers in the AI race. The money is meant to account for the record amounts of cash it has spent and plans to spend on the unprecedented AI infrastructure buildout the company is undertaking. In the past fiscal year alone, Oracle’s capital expenditures came in at $55.7 billion, more than $5 billion higher than previous estimates, which were already deemed a hefty commitment considering it was roughly double what it spent in the year prior.\n\nA year ago, Oracle’s dedication to spending money on AI would have made investors sing. Last year, President Trump announced Stargate, a program that would see Oracle build AI data centers worth 7 gigawatts of planned capacity, aka the capacity to power more than 5 million homes. Oracle’s new position at the center of this AI gold rush got the stock soaring so much that it briefly made Oracle co-founder [Larry Ellison](https://gizmodo.com/elon-musk-was-just-unseated-as-the-worlds-richest-person-2000656741) the richest man in the world.\n\nBut that was then, and this is now. The company’s increased reliance on debt markets started to [spook](https://gizmodo.com/oracles-ai-push-is-leading-to-its-worst-quarter-since-2001-2000703605) experts at the end of last year as the Stargate data center projects got hit with [delays](https://gizmodo.com/wall-street-sphincters-tighten-as-oracle-delays-its-openai-data-center-buildout-2000699248). Then, the company’s financial commitments turned its free cash flow negative, where experts predict it will stay until 2030. In a move that [analysts think](https://gizmodo.com/oracle-lays-off-thousands-to-offset-ai-spending-2000740924) was meant to offset some of this, Oracle laid off [thousands](https://www.cnbc.com/2026/03/31/oracle-layoffs-ai-spending.html) of employees earlier this year.\n\nOracle is not only a major builder of America’s AI infrastructure, but it is also considered a bellwether of market confidence in AI, and investor reaction to its earnings report on Wednesday was yet another instance showing market uncertainty of AI investment returns. Despite record revenues in the past fiscal year, Oracle’s capital expenditure and debt increases were enough to send the stock down more than %10 in after-hours trading.\n\nNow the greater concern is that if Oracle’s AI infrastructure buildout experiences any hiccups or if its customers, and mainly its most significant customer OpenAI, are unable to pay Oracle for the infrastructure it provides, then it won’t be able to pay for this mounting debt. The fallout from that possibility wouldn’t just impact Oracle but would likely kick off a domino effect that could engulf the entire American economy.\n\nTo make the situation even stickier, things are not looking 100% neat for OpenAI, which is swiftly losing ground to its top competitors Anthropic and Google and burning through cash without turning over a profit. Earlier this year, numerous reports claimed that OpenAI CFO Sarah Friar was worried about revenue growth and [unsure](https://gizmodo.com/the-start-of-openais-trial-against-elon-musk-wasnt-the-worst-thing-that-happened-to-sam-altman-today-2000751813) if OpenAI would be able to pay for its many computing contracts, which, if it were to be the case, would include its $300 billion deal with Oracle.", "url": "https://wpnews.pro/news/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance", "canonical_source": "https://gizmodo.com/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance-2000770303", "published_at": "2026-06-11 01:01:13+00:00", "updated_at": "2026-06-11 17:54:50.596789+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure"], "entities": ["Oracle", "Larry Ellison", "Stargate", "Trump"], "alternates": {"html": "https://wpnews.pro/news/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance", "markdown": "https://wpnews.pro/news/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance.md", "text": "https://wpnews.pro/news/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance.txt", "jsonld": "https://wpnews.pro/news/oracle-upsets-the-market-with-even-more-ai-spending-and-debt-issuance.jsonld"}}