⚡️ Oracle Under Fire: Investors Sue Over "Hidden" AI Spending Spree
While the world is riding the AI hype train, Oracle ($ORCL) bondholders are hitting the brakes. A class-action lawsuit has been filed in New York, accusing the tech giant of concealing the massive debt required to fund its AI ambitions.
The Core of the Conflict:
In September, investors snapped up $18 billion in Oracle bonds, fueled by news of a massive $300B partnership with OpenAI.Just 7 weeks later, Oracle "surprised" the market by taking on an additional $38 billion in loans to build the data centers needed for that very deal.The market reaction was "swift and harsh," leading to a drop in both bond and stock values.
The Big Picture: Oracle’s total debt has ballooned to approximately $108 billion. Plaintiffs claim they were blindsided by the scale of borrowing needed to satisfy the OpenAI contract.
Market Take: The AI arms race is entering a "cost-at-any-price" phase. This lawsuit highlights a growing risk: even tech titans can overextend themselves while building the infrastructure for the future.
📉 Keeping a close eye on $ORCL. Legal battles in the US are never quick—or cheap.
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