Oracle Limits AI Financing to $20 Billion Through 2030
Oracle will cap additional AI financing at $20 billion to address investor concerns over aggressive data-center expansion and debt levels.
Oracle announced a plan to limit additional AI financing to $20 billion through fiscal 2030 to address investor concerns regarding its aggressive data-center expansion. Speaking at an investor day in Las Vegas, CFO Hilary Maxson stated that capital spending is expected to peak this fiscal year and next.
The company projects that free cash flow will turn positive in the second half of fiscal 2028 and exceed $30 billion in fiscal 2029. At that point, Oracle expects to stop relying on outside funding for growth. To reduce upfront cash needs, the company will utilize vendor financing, customer pre-payments, and customer-provided hardware.
Oracle's heavy reliance on debt and stock sales was driven by its partnership with OpenAI, which added hundreds of billions of dollars to its cloud backlog. Following the announcement, Oracle shares rose over 12%, and other AI infrastructure stocks also saw gains.
