As AI Spending Surges, Return-on-Investment Questions Mount
Oracle’s bond yields have climbed toward junk levels as S&P warns the company’s AI buildout could widen cash deficits to $42 billion.
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As AI spending surges, return-on-investment questions mount
The rapid expansion of artificial intelligence is creating major opportunities while also exposing companies to significant financial risks, The New York Times reports. Larry Ellison and his son are using Oracle-generated wealth to expand into media, with control of Paramount and a potential takeover bid for Warner Bros. Discovery. Meanwhile, Oracle is facing financial pressure because of the enormous costs of building AI infrastructure, leading…
Oracle is one notch above junk after S&P downgrade as AI data-centre spending burns through cash
S&P downgraded Oracle to BBB- on July 9, placing the company one notch above junk status, as a $250 billion data-centre expansion plan burns through cash faster than revenue can replace it. Oracle is now the second-largest non-financial debt issuer in the Bloomberg US Corporate Bond Index after Amazon, with $117 billion outstanding. Shares fell […] This story continues at The Next Web
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