Oracle bonds sell-off as AI investments fuel investor concerns

Oracle bonds sell-off as AI investments fuel investor concerns

By Matt Tracy
Publication Date: 2025-11-14 22:23:00

  • Oracle bonds take a hit following reports of debt relief
  • Investors are concerned about exposure to AI
  • Others question the depreciation calculation for AI expansion

Nov 14 (Reuters) – Oracle bonds have taken a hit in recent days after reports that the cloud and AI services provider plans to add another $38 billion to its heavy debt load to finance its AI infrastructure, according to analysts and investors.

Oracle has Billions of dollars invested will build its cloud and AI infrastructure this year. With about $104 billion in outstanding debt, including $18 billion in bonds, the company spends more than it earns from operations as it relies on future profits Contracts with startups like OpenAI.

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“What’s interesting is that most (big tech) companies are trying to maintain their (stock) repurchase programs while at the same time making investments right now, and to do that they’re actually borrowing and therefore using debt,” Lisa Shalett said…