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The Economic Times
The Economic Times
Business
Anupam Nagar

Global Market: Oracle's AI spending spree pushes credit rating to brink of junk status

Oracle Corp's aggressive borrowing to fund its artificial intelligence expansion has raised fresh concerns over its financial health, with the cloud computing giant edging closer to a junk-grade credit rating as investors question the sustainability of debt-fuelled AI infrastructure spending, according to a Reuters report.

Unlike larger technology rivals such as Alphabet, Amazon, Microsoft and Meta Platforms, Oracle has relied heavily on debt and long-term lease commitments to finance its rapid buildout of AI data centres, reflecting its relatively limited cash reserves.

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