Oracle plans $40B AI build including Stargate amid investor unease
Business
Oracle wants to raise $40 billion in the next fiscal year to build out its massive AI infrastructure, including the Stargate data center project.
This follows the past fiscal year's $43 billion fundraising spree, but investors are uneasy about Oracle's growing debt and projections that free cash flow will remain negative until 2030.
OpenAI may not honor Oracle deal
OpenAI, one of Oracle's biggest customers, is struggling financially and might not be able to stick to a multibillion-dollar deal with Oracle.
Oracle's stock has already knocked down over 10% after its earnings report amid concerns about its capital spending and debt.
Oracle's AI buildout is being closely watched because any failure could have wider economic fallout.