Oracle shares slide on $15B increase in data center spending

December 11, 2025

TL;DR

Oracle's stock fell significantly after reporting disappointing quarterly revenues that missed analyst estimates.
The company plans to increase its spending on data centers for AI by $15 billion this year, raising its total capital expenditure forecast by over 40% to $50 billion.
Oracle is aggressively trying to compete with major cloud providers like Google, Amazon, and Microsoft in the AI infrastructure space.
Despite increased spending, Oracle maintained its full-year revenue forecast and expects only a modest revenue increase the following fiscal year.
Investor concerns are growing regarding Oracle's reliance on debt to fund its AI infrastructure expansion and the ability of customers like OpenAI to meet long-term payment obligations.
Oracle's cloud infrastructure business reported lower-than-expected revenues in the last quarter.
The company is adding data center capacity and has a large data center cluster under construction in Abilene, Texas, for OpenAI.
Analysts and rating agencies are flagging concerns about Oracle's increasing debt levels and its dependence on a few large AI customers.
Oracle is exploring various financing methods, including bond sales and debt financing, and is also renting capacity to mitigate direct borrowing costs.

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