#1
#1 out of 1
business19h ago
Key facts: Oracle launches $18B bond; banks offer $18B loan; stock down 9%
- Oracle launches an $18 billion bond offering to fund its data center expansion, including 40-year bonds.
- About 20 banks are offering an $18 billion loan for Oracle's New Mexico data center campus.
- Oracle's stock fell about 9% this week as investors questioned AI spending promises.
- The bond and loan supports Oracle's data center expansion and AI infrastructure buildup.
- The financing activity underscores a broader trend of using long-term debt for AI-related projects.
- The New Mexico campus is tied to Oracle's data center footprint expansion.
- Investor concerns focus on whether Oracle can deliver on AI promises without overspending.
- The report highlights a broader market dynamic around AI funding strategies.
- The article notes the involvement of a large loan group in supporting Oracle's AI infrastructure.
- The findings place emphasis on debt-financed AI buildouts as a funding model.
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