Oracle is making massive bets on AI infrastructure, including a reported $300 billion capacity deal with OpenAI as part of the Stargate initiative, but has acknowledged in a regulatory filing that these investments carry serious risks — including customer non-payment, overcapacity, power shortages, and construction challenges. The company is caught in a difficult position where scaling back could cause it to fall behind competitors, yet continuing to invest requires taking on substantial debt, with plans to spend $70 billion on capital expenditures in fiscal 2027 and raise around $40 billion in debt and equity. Investors appear unconvinced, with Oracle's stock falling more than 40% over the past month.
