🚨oracle’s AI Deals Are Falling Apart One By One. – Bull Theory
🚨oracle’s AI Deals Are Falling Apart One By One.
Microsoft is now winding down its deal to rent AI computing power from Oracle.
This comes just two days after Oracle canceled a $7 billion deal to lease 100,000 AI chips to Tencent, after pressure from the Trump administration.
And in the same week, Oracle had to raise $20 billion to keep funding its AI buildout.
It sold $10 billion of new shares at an 11% discount, and $10 billion of bonds paying up to 8.65% interest.
That used up its entire planned funding limit through 2030. In less than a week.
The cost to insure Oracle’s debt against default hit a record 3.25% a year last month. $ORCL has crashed -26% in just last 7 trading days, and is now down 68% from its all time high.
Oracle borrowed billions to build data centers for AI. Now its biggest deals are falling apart, but the debt is still there.
🔗SOURCE ➡️ Bull Theory
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