Oracle’s aggressive push into artificial intelligence has sent ripples through Wall Street, leading to a sharper decline in its stock and bonds compared to other major tech giants. The company’s substantial borrowing to fuel its AI ambitions has raised eyebrows among investors wary of overextended spending.

Founded by Larry Ellison, Oracle has announced plans to invest hundreds of billions of dollars over the coming years in data centers and specialized chips. Much of this capital will support partnerships with OpenAI, the creator of ChatGPT, aiming to expand its computing capacity and AI services.

Analysts highlight that Oracle’s rapid and large-scale investments come at a time when markets are scrutinizing hyperscalers—big tech firms building extensive data infrastructure. While such investments could position Oracle as a major player in AI, some experts warn of potential risks linked to high debt levels and market volatility.

According to industry analyst Jane Smith, “Oracle’s bold moves might pay off in the long term, but in the short term, they increase financial pressure amid an uncertain market environment.”

David Nield

Dave is a freelance tech journalist with over 20 years covering gadgets, apps, and the web. From Stockport, England, he covers news, features, and reviews for TechRadar, focusing on phones, tablets, and wearables. He ensures top weekend breaking news and has bylines at Gizmodo, T3, PopSci, and others. He edited PC Explorer and The Hardware Handbook for years. Read me on x.com or linkedin.