Oracle’s AI spending blows past estimates, raising worries over growing debt
businesstimes.com.sg Jun 11, 2026

Oracle’s AI spending blows past estimates, raising worries over growing debt

AI-summarised brief · reviewed before publication

Oracle's AI spending has exceeded estimates, prompting concerns over the company's growing debt. The company forecast capital spending plans for fiscal 2027 above Wall Street estimates, with expected expenditures of up to $95 billion. Oracle plans to raise nearly $40 billion through debt and equity financing in 2027. The company's shares fell 8.9% in extended trading following the announcement. Oracle is working to build out its AI infrastructure and position itself as a major rival to cloud leaders. The company's spending is expected to continue to accelerate, with a massive data centre in Texas nearing completion.

💡 Why It Matters

  • · Oracle's massive spending on AI infrastructure threatens to undermine its financial stability, given its already significant debt load.
  • · Rising debt and negative free cash flow are likely to intensify investor scrutiny.