Oracle to raise $20B for AI and stock sinks 3%
Business
Oracle just announced it's raising $20 billion by selling new shares and bonds, $10 billion each. The goal? To ramp up its artificial intelligence (AI) infrastructure.
But investors didn't love the news: Oracle's stock sank 3% in premarket trading.
Oracle shares down 33%, investors worried
This big cash move will help Oracle cover general expenses, pay off debt, and fuel more AI projects.
Still, some investors are worried about all the borrowing, especially since Oracle's stock has already dropped 33% this year and is down 50% over the past 12 months.
It's a bold bet on AI at a time when Wall Street is watching every dollar.