Oracle is funding a datacenter spending spree with negative cashflow and borrowing. OCI is set to host large language model builders, notably OpenAI, alongside its own customers’ workloads. Oracle spent $55.7 billion on datacenters and cloud infrastructure in fiscal year 2026, which ended in May, and plans to spend between $90 billion and $95 billion in fiscal 2027.
That will require more debt. In 2027, Oracle hopes to raise around $40 billion in debt and equity, on top of the $18 billion in debt it raised in September 2025.
We are ALMOST to the pot of gold I swear! I just need 5 more pots of gold to get us there!!
Is “That will require more debt” the “You must construct additional pylons” of the AI/datacenter industry or does it rather accurately describe the entire AI/datacenter industry in a meme?
Oracle’s competitive advantage is (and has been since at least the 1990s) legions of lawyers to ensure you’re not underpaying them per the fine print of some contract your CTO didn’t read. I’m sure they can apply this to LLMs just as well as any other line of business Larry’s decided to enter.