{"id":15246,"date":"2025-12-11T11:28:29","date_gmt":"2025-12-11T11:28:29","guid":{"rendered":"https:\/\/infundpros.com\/?p=15246"},"modified":"2025-12-11T11:28:29","modified_gmt":"2025-12-11T11:28:29","slug":"oracle-shares-slide-on-15bn-increase-in-data-centre-spending","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=15246","title":{"rendered":"Oracle shares slide on $15bn increase in data centre spending"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=3633f277-d23b-44d0-b818-5fa3a89086cc\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Oracle stock dropped after it reported disappointing revenues on Wednesday alongside a $15bn increase in its planned spending on data centres this year to serve artificial intelligence groups.<\/p>\n<p>Shares in Larry Ellison\u2019s database company fell 11 per cent in pre-market trading on Thursday after it reported revenues of $16.1bn in the last quarter, up 14 per cent from the previous year, but below analysts\u2019 estimates.<\/p>\n<p>Oracle raised its forecast for capital expenditure this financial year by more than 40 per cent to $50bn. The outlay, largely directed to building data centres, climbed to $12bn in the quarter, above expectations of $8.4bn. <\/p>\n<p>Its long-term debt increased to $99.9bn, up 25 per cent from a year ago.<\/p>\n<p>Oracle has launched an aggressive bid to catch up to much larger cloud players such as Google, Amazon and Microsoft in the race to supply the vast amount of computing power that AI groups including OpenAI and Anthropic need to train and run their models. <\/p>\n<p>Clay Magouyrk, Oracle\u2019s co-chief executive, said its cloud contracts would \u201cquickly add revenue and margin to our infrastructure business\u201d as he defended the vast investments. <\/p>\n<p>Yet the company said it expected full-year revenues to remain unchanged from its previous forecast of $67bn. It expected to generate $4bn more in revenue the following fiscal year.<\/p>\n<p>Total bookings for future revenue, known as remaining performance obligations, rose 15 per cent to $523bn in the three months to the end of November, supported by deals with Meta and Nvidia. <\/p>\n<figure id=\"sbgfbzoi\" class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\"  width=\"3500\" height=\"2500\"><source media=\"(max-width: 490px)\"  width=\"1500\" height=\"2000\"><\/picture><\/figure>\n<p>Investors initially welcomed the push into AI from Oracle. Shares surged after its last earnings in September when it disclosed it had added more than $300bn in bookings, largely driven by data centre contracts with OpenAI. <\/p>\n<p>But the stock has given up its gains since then as investors worry about the large amounts Oracle will have to borrow and spend on infrastructure for the ChatGPT maker \u2014 and concerns over the start-up\u2019s ability to pay for these contracts in the years ahead. OpenAI has struck deals to spend $1.4tn over the next eight years on computing power.<\/p>\n<p>Oracle\u2019s Big Tech rivals such as Amazon, Microsoft and Google have helped reassure investors about their large capital investments by posting strong earnings from their vast cloud units. <\/p>\n<p>But in the last quarter, Oracle\u2019s cloud infrastructure business, which includes its data centres, posted worse than expected revenues of $4.1bn. Ellison\u2019s company is also relying more heavily on debt to fuel its expansion.<\/p>\n<p>Net income rose to $6.1bn in the quarter, boosted by a $2.7bn pre-tax gain from the sale of semiconductor company Ampere to SoftBank. <\/p>\n<figure id=\"vfsbjsuq\" class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\"  width=\"3500\" height=\"2500\"><source media=\"(max-width: 490px)\"  width=\"1500\" height=\"2000\"><img decoding=\"async\" src=\"https:\/\/infundpros.com\/wp-content\/uploads\/2025\/12\/https:\/\/d6c748xw2pzm8.cloudfront.net\/prod\/1abb0ea0-d572-11f0-a455-4ba130715b4f-standard.png\" alt=\"Column chart of Remaining performance obligations ($bn) showing Oracle is relying on OpenAI for the bulk of its future revenues\" data-image-type=\"graphic\" width=\"3500\" height=\"2500\" loading=\"lazy\"><\/picture><\/figure>\n<p>The company added an additional 400MW of data centre capacity in the quarter, Magouyrk told investors. Construction was on track at its large data centre cluster in Abilene, Texas, which is being built for OpenAI, he added.<\/p>\n<p>Magouyrk, who took over from Safra Catz in September, said there was ample demand from other clients for Oracle\u2019s data centres if OpenAI did not take up the full amount it had contracted for.<\/p>\n<p>\u201cWe have a customer base with a lot of demand such that whenever we find ourselves [with] capacity that\u2019s not being used, it very quickly gets allocated,\u201d he said. <\/p>\n<p>Co-founded by Ellison as a business software provider, Oracle was slow to pivot to cloud computing. The billionaire remains chair and its largest shareholder.<\/p>\n<p>Investors and analysts have raised concerns in recent months about the upfront spending required by Oracle to honour its AI infrastructure contracts. Moody\u2019s in September flagged the company\u2019s reliance on a small number of large customers such as OpenAI. <\/p>\n<p>Morgan Stanley forecasts that Oracle\u2019s net debt will soar to about $290bn by 2028. The company sold $18bn of bonds in September and is in talks to raise $38bn in debt financing through a number of US banks.<\/p>\n<p>Brent Thill, an analyst at Jefferies, said Oracle\u2019s software business \u2014 which generated $5.9bn in the quarter \u2014 provided some buffer amid accelerated spending. \u201cBut the timing mismatch between upfront capex and delayed monetisation creates near-term pressure.\u201d<\/p>\n<p>Doug Kehring, principal financial officer, said the company was renting capacity from data centre specialists to reduce its direct borrowing.<\/p>\n<p>The debt to build the Abilene site was raised by start-up Crusoe and investment group Blue Owl Capital, and Oracle has signed a 15-year lease for the site.<\/p>\n<p>\u201cOracle does not pay for these leases until the completed data centres\u2009.\u2009.\u2009.\u2009are delivered to us,\u201d Kehring said, adding that the company was \u201ccommitted to maintaining our investment-grade debt ratings\u201d.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/3633f277-d23b-44d0-b818-5fa3a89086cc\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Oracle stock&#8230;<\/p>\n","protected":false},"author":1,"featured_media":15247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-15246","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Oracle shares slide on $15bn increase in data centre spending | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=15246\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oracle shares slide on $15bn increase in data centre spending | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=15246\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-11T11:28:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2025\/12\/https3A2F2Fd1e00ek4ebabms.cloudfront.net2Fproduction2Fde06a25b-f4d0-41ea-8f97-d46037501c9f.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"394\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=15246#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=15246\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Oracle shares slide on $15bn increase in data centre spending\",\"datePublished\":\"2025-12-11T11:28:29+00:00\",\"dateModified\":\"2025-12-11T11:28:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=15246\"},\"wordCount\":783,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=15246#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=15246\",\"url\":\"https:\/\/infundpros.com\/?p=15246\",\"name\":\"Oracle shares slide on $15bn increase in data centre spending | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2025-12-11T11:28:29+00:00\",\"dateModified\":\"2025-12-11T11:28:29+00:00\",\"description\":\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=15246#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=15246\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=15246#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Oracle shares slide on $15bn increase in data centre spending\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Oracle shares slide on $15bn increase in data centre spending | inFundPros","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=15246","og_locale":"en_US","og_type":"article","og_title":"Oracle shares slide on $15bn increase in data centre spending | inFundPros","og_description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it","og_url":"https:\/\/infundpros.com\/?p=15246","og_site_name":"inFundPros","article_published_time":"2025-12-11T11:28:29+00:00","og_image":[{"width":700,"height":394,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2025\/12\/https3A2F2Fd1e00ek4ebabms.cloudfront.net2Fproduction2Fde06a25b-f4d0-41ea-8f97-d46037501c9f.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=15246#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=15246"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Oracle shares slide on $15bn increase in data centre spending","datePublished":"2025-12-11T11:28:29+00:00","dateModified":"2025-12-11T11:28:29+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=15246"},"wordCount":783,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=15246#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=15246","url":"https:\/\/infundpros.com\/?p=15246","name":"Oracle shares slide on $15bn increase in data centre spending | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2025-12-11T11:28:29+00:00","dateModified":"2025-12-11T11:28:29+00:00","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Oracle stock dropped after it","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=15246#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=15246"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=15246#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Oracle shares slide on $15bn increase in data centre spending"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/15246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15246"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/15246\/revisions"}],"predecessor-version":[{"id":15248,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/15246\/revisions\/15248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/15247"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}