By https://www.facebook.com/CNBC
Publication Date: 2026-01-14 19:05:00
The Oracle logo is displayed on a building on an Oracle campus in Redwood Shores, California, on September 10, 2025.
Justin Sullivan | Getty Images
oracle was sued Wednesday by bondholders who claim they suffered losses because the company was run by a billionaire Larry Ellison failed to mention that it had to sell significant additional debt to expand its artificial intelligence infrastructure.
The proposed class action lawsuit was filed in a New York state court in Manhattan on behalf of investors who purchased $18 billion in notes and bonds that Oracle issued on Sept. 25, two weeks after Oracle announced a five-year, $300 billion deal OpenAI with computing power.
Those investors said they were blindsided when Oracle returned to capital markets seven weeks later to raise $38 billion in loans to finance two data centers in support of the OpenAI protocol.
“The bond market’s reaction to Oracle’s additional debt was swift and forceful” as prices fell and yields rose…
