Oracle falls 7% as debt costs for AI expansion rise

Oracle shares fell nearly 7% to $134.605 on Thursday morning as the market evaluated the financing costs required for its artificial intelligence buildout.

Reuters reported that bonds from AI-related issuers traded roughly 115 basis points above benchmarks. That compares with 78 basis points for the broader investment-grade market, creating a 37-basis-point difference across the sector.

At the same time, Oracle reported $11.6 billion in quarterly cloud revenue, which represents an increase of 62%. Investors are watching how quickly those cloud contracts convert into cash to fund capacity without driving borrowing costs higher.