Oracle projects up to $95 billion in capital spending for fiscal 2027 to expand its AI-focused cloud data centers, expecting to recoup $20–25 billion from customer repayments. It plans to raise nearly $40 billion through debt and equity, including a $20 billion at-the-market stock issuance, as it vies with Amazon and Microsoft.

• Oracle is guiding to $95B in capex for fiscal 2027, far above the $67.7B Wall Street expected, and it already overshot its FY2026 target ($55.66B vs. $50B goal)
• It's funding this with nearly $40B in new debt and equity, including a $20B at-the-market stock offering, raising leverage concerns
• Shares dropped 8.9% after-hours despite backlog (future contracted revenue) hitting $638B, beating the $592.5B forecast
• CFO warned gross margins will shrink as spending on data centers accelerates, with $70B of the capex being Oracle's own money and $20-25B customer-funded

Oracle is laying off thousands of employees as it invests heavily in artificial intelligence and builds new data centers. Workers in the U.S. and India have reported receiving termination emails, with some analysts predicting up to 30,000 job cuts.

• Oracle is laying off thousands of workers, with employees in the U.S. and India receiving abrupt termination emails
• TD Cowen analysts predict the cuts could reach up to 30,000 jobs total
• The layoffs are tied to Oracle funneling massive spending into AI infrastructure and new data centers
• Oracle employed roughly 162,000 people globally as of late May, giving scale to the potential cuts

Investors are increasingly divided in the AI sector, leading to significant losses for Sam Altman's associates. SoftBank's stock has plummeted 40%, and Oracle has lost all its gains following a high-profile AI deal. The trio's ambitious Stargate AI infrastructure project, aimed at building data centers, faces uncertainty amid these market shifts.

• SoftBank's stock has dropped 40% amid AI market turmoil
• Oracle has erased all its gains following its high-profile AI deal
• Altman's Stargate data-center infrastructure project faces growing uncertainty as investor sentiment splits on AI