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.