Oracle Weighs $38 Billion AI Data Center Debt

This article first appeared on GuruFocus.

Oracle (NYSE:ORCL) is leaning deeper into the AI boom, even as Wall Street grows uneasy about how much the build-out could cost.

A report from the Financial Times says Oracle and Vantage Data Centers are in talks with banks and private lenders to raise as much as $38 billion in debt to build new data centers for OpenAI. The deal could come together within weeks, people familiar with the negotiations said. If it closes, it would rank as one of the biggest financing packages tied to AI infrastructure so far.

That price tag is already rattling investors. Oracle shares fell about 3% in early trading as concerns resurfaced about the company’s rising debt load. Oracle did not comment on the report.

AI may be the future, but it’s also wildly expensive, and funding it now means borrowing heavily today. Oracle is making a massive bet on AI data centers, but investors are still deciding whether the payout will be worth the risk.