Oracle shares fall as investors assess the impact of AI spending following the Alphabet Fundraising Plan (ORCL).

Shares of Oracle (NYSE:ORCL) fell in premarket trading on Tuesday as investors assessed the broader impact of rising artificial intelligence infrastructure costs after Alphabet announced a major capital raising initiative.

The stock fell 4.2% before the opening bell, giving up some of the gains seen in the previous session.

Alphabet’s financing plan raises questions about the cost of investing in AI

Investor sentiment towards AI-related stocks was hit after Alphabet announced plans to raise $80 billion through a stock offering designed to fund further expansion of its artificial intelligence infrastructure.

The fundraising package includes a $10 billion investment from Berkshire Hathaway, underscoring the scale of capital needed to meet growing demand for AI services.

Alphabet said the proceeds will be used to expand computing capacity and strengthen its AI infrastructure as…