Oracle Plans $70B AI Capex and $40B Debt Raise for 2027

Oracle announced that it will allocate about $70 billion to capital expenditures in fiscal 2027 to expand its AI infrastructure, and intends to raise roughly $40 billion through debt and equity financing. The company’s debt load has already exceeded $100 billion after adding $43 billion in the prior fiscal year. Oracle reported total revenue of $67.4 billion, a 17 % year‑over‑year increase, with cloud revenue up 39 % to $34.0 billion and AI‑related infrastructure contracts worth $67 billion signed during the quarter.

Analysts noted that the aggressive spending plan strains free‑cash flow and has pushed the stock down more than 10 % in after‑hours trading, raising concerns about leverage and execution risk. The company previously cut thousands of jobs and faces scrutiny over its cash‑intensive AI build‑out, especially as its largest customer, OpenAI, confronts its own profitability challenges.