Oracle's AI Bet Risks Credit Rating | Business and Finance News

Oracle’s AI ambitions are hitting a financial wall as it burns through $20 billion in cash while spending $250 billion on data centers—forcing S&P to downgrade its credit rating and Moody’s to issue a negative outlook. With rivals like Alphabet and Meta flush with cash, Oracle risks falling behind in the AI race unless it can balance massive investments with tighter cash flow. The company’s trying to ease pressure by asking customers to pay upfront, but the clock is ticking: AI spending is set to climb through 2029, amid a broader $725 billion industry push. To keep its investment-grade rating—and avoid junk status—Oracle must choose between disappointing bondholders, issuing more stock, or slashing spending—all while navigating a high-stakes, high-cost tech arms race. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/47a616f57a289404