Oracle shares dropped 4% in premarket trading as the company plans to raise $45-50 billion to expand its cloud infrastructure. Major customers like AMD, Meta, Nvidia, OpenAI, TikTok, and xAI are driving the need for increased capacity. Investors are worried about the company’s rising debt and the sustainability of AI-related spending in the tech sector. Oracle aims to meet the funding target through a mix of equity and debt, including a new $20 billion program and senior unsecured bonds. Analysts believe this financing plan will support Oracle’s credit rating but could impact margins in the short term.

Read more at Yahoo Finance: Oracle shares fall as investors assess up to $50 billion AI funding plan