Oracle’s stock dropped 11% as its outlays on data centers jumped and its sales fell short of expectations, a possible sign of further AI investment concerns.
The software giant’s value shot up in September when it signed half a trillion dollars’ worth of deals to build new cloud-computing infrastructure, briefly making its cofounder Larry Ellison the world’s richest person. But “the market’s mood has shifted from giddy optimism to show-me skepticism,” Sherwood News noted, and analysts are concerned over Oracle’s ability to raise the money.
Its $100 billion debt load is greater than any other Big Tech company. Part of the concern is over Oracle’s deep ties to OpenAI, which is seeing growing competition, Bloomberg reported.