Oracle $300B OpenAI US data centers deal strains Wall Street
Oracle signed a massive $300 billion deal with OpenAI to boost US data centers, but it's making things tricky for Wall Street.
Big banks like JPMorgan are hitting their lending limits on Oracle, so Crusoe leased the Abilene expansion to Microsoft when lenders balked at financing it if Oracle was the tenant.
Oracle plans $50B 2026 raise
To keep things moving, Oracle plans to raise $50 billion through stocks and bonds in 2026, but experts say it will probably need at least another $100 billion for 2027 and the first half of 2028.
With a lower credit rating and lots of debt tied up in building these data centers, it's a tough road ahead.
Still, Oracle says it is "We are proud of the rapid progress that's been made both in financing and developing our data centers" and "Our partners have diversified their capital sources in ways that enable us to keep construction moving forward on time and as planned."