By Lindsay Clark
Publication Date: 2026-01-29 14:18:00
Oracle could cut up to 30,000 jobs and sell healthcare technology unit Cerner to ease funding problems at its AI data center, investment banker TD Cown claimed, amid changing sentiment towards Big Red’s massive expansion plans.
A research note from TD Cowen said equity and debt investors are increasingly asking how Oracle will fund its data center construction program to support it its $300 billion five-year deal with OpenAI.
The bank estimates that the OpenAI deal alone will require $156 billion in capital expenditures. When Big Red raised its 2026 investment forecasts by $15 billion to $50 billion last year, it spooked some investors.
This year, “both equity and debt investors have raised questions about Oracle’s ability to finance this expansion, as evidenced by the widening of Oracle’s credit default swap (CDS) spreads and pressure on Oracle stock/bonds,” the research note continued.
