Oracle is racking up debt to fund AI data centers, leading to concerns among investors. The company’s backlog of performance obligations stands at $523 billion, with $68 billion added in the latest quarter. Heavy spending on AI infrastructure has increased Oracle’s debt to $108 billion, up from $92.6 billion just months ago. Analysts estimate Oracle may need to add $100 billion in debt to fulfill contracts, but management believes they can raise less. Despite the debt burden, Oracle remains committed to its investment-grade debt rating. Investors are wary, causing the stock to tumble as the company’s AI growth story faces skepticism.

Read more at Nasdaq.: Oracle’s Debt Balloons to $108 Billion as AI Spending Soars