Meta and Oracle face scrutiny over massive AI infrastructure spending

Meta and Oracle are facing increased scrutiny from credit investors as they aggressively expand their artificial intelligence infrastructure. Both companies are committing massive capital expenditures to build out data centers, leading to significant debt and pressure on cash flows.

Oracle’s fiscal 2026 capital expenditure reached approximately $55.7 billion, a 162% increase from the previous year. The company is eyeing up to $95 billion in capital expenditure for fiscal 2027. This expansion has impacted Oracle’s credit profile; S&P Global downgraded the company’s credit rating to BBB-, placing it just one notch above junk status. Oracle’s total debt has reportedly reached $129.5 billion, alongside commitments for roughly $260 billion in future data center leases.

Meta has also intensified its AI spending, including a $30 billion bond issuance in late 2025 to fund infrastructure and a $12 billion data center project in Texas. Credit spreads on Meta’s bonds, along with those of Alphabet and Amazon, have widened as investors demand higher returns to compensate for the risks associated with the high costs of AI-related capital expenditures.