By https://www.theguardian.com/profile/graemewearden
Publication Date: 2025-12-11 07:34:00
Important events
Introduction: Oracle shares fall as earnings raise doubts about AI profitability
Good morning and welcome to our ongoing coverage of the economy, financial markets and the global economy.
Fears about the profitability of the AI industry are increasing again according to results from oracle failed to impress Wall Street.
oraclePart of the race to provide massive computing power to AI companies, missed sales and profit expectations last night. It also reported an increase in spending on AI data centers – an area where the company has already spent (and borrowed) heavily.
Capital spending for fiscal 2026 is now expected to be $15 billion higher than Oracle’s $35 billion estimate in September. This shows that the costs of building the infrastructure for the AI revolution are rising quickly… before many gains become apparent.
oracle The company also recorded a one-time pre-tax gain of $2.7 billion from the sale of its shares in chip designer Ampere…
