By Jonathan Stempel
Publication Date: 2026-01-14 19:35:00
By Jonathan Stempel
NEW YORK, Jan 14 (Reuters) – Oracle was sued on Wednesday by bondholders who said they suffered losses because the company chaired by billionaire Larry Ellison hid its need to sell significant “additional debt” to expand its business artificial intelligence Infrastructure.
The proposed class action lawsuit was filed in a New York state court in Manhattan on behalf of investors who said they bought $18 billion in senior notes and bonds that Oracle issued on Sept. 25, shortly after the software and cloud computing company signed a five-year, $300 billion contract to supply Sam Altman OpenAI with computing power.
Those investors said they were blindsided when Austin, Texas-based Oracle returned to capital markets seven weeks later to raise $38 billion in loans to finance two data centers in Texas and Wisconsin in support of the OpenAI agreement.
“The bond market’s reaction to Oracle’s additional debt was swift and decisive,” said the…