Oracle stock slumped to close around 9% lower on Monday, after the cloud infrastructure group confirmed plans to raise $20 billion through new debt and equity offerings, a move representing that it is extending its heavy spending on artificial intelligence infrastructure.
The raise includes a six-tranche bond sale of investment-grade debt, part of what Oracle has described as a $50 billion AI buildout plan.
After Monday's close of trading, Oracle shares fell $11.45 or 8.76%, ending the trading session at $199.22.
With half of the raise, $10 billion, coming from a bond sale, the news reignited investor concern over the company's AI-related debt load and, more broadly, became the latest leveraged 'bubble' signal for the market's AI story.
Oracle Cloud Infrastructure, which will use most of the fresh funds, gives its customers a choice of AI compute hardware, including expanded access to Nvidia's Vera Rubin systems and planned offerings from Cerebras and SambaNova, and its among the compute infrastructure companies seeking to facilitate AI companies and customers seeking to run AI Agent platforms from the cloud.
Earlier this year, Oracle struck an agreement with Google for Oracle Cloud Infrastructure to run Google TPUs for its customers, with availability expected to begin in 2027 and ramp over several years.
The company has also been building out its own agentic AI features inside its Fusion Cloud applications, including tools it markets under its Deep Trust AI Architecture and Fusion Companion branding.
Elsewhere in the sector, CoreWeave - a focus of recent jittery market sentiments - and another debt-laden AI cloud infrastructure rival saw its stock shed another 8.6% (it's now down 44% over the past month), finishing the session at $50.15 - albeit, the price clawed back 1.67% in after-hours exchanges.
