Overview
- Oracle shares have fallen about 45% from their September peak after a quarter with $12 billion in capex and a surprise $15 billion increase to its fiscal 2026 spending plan centered on OpenAI-dedicated facilities.
- Bloomberg reported that Oracle has delayed completion of some U.S. data centers for OpenAI from 2027 to 2028 due to labor and material shortages, highlighting bottlenecks in transformers, turbines and other critical equipment.
- Oracle’s bond risk jumped, with some newer notes trading like junk and its credit-risk gauge reaching the highest level since 2009, signaling a sharp reassessment by debt investors.
- UBS estimates AI data-center and project financings have reached roughly $125 billion so far this year, up from $15 billion in the same period of 2024, underscoring a shift toward public and private credit.
- Bank of America estimates the top five hyperscalers issued about $121 billion of bonds in 2025, as the Bank of England warned that heavier reliance on debt for AI infrastructure could magnify financial-stability risks if valuations reset.