Oracle hit hard in Wall Street’s tech sell-off over its huge AI bet
by Tabby Kinder and George Steer in New York and Rafe from Ars Technica - All content on (#71HF5)
Oracle has been hit harder than Big Tech rivals in the recent sell-off of tech stocks and bonds, as its vast borrowing to fund a pivot to artificial intelligence unnerved Wall Street.
The US software group founded by Larry Ellison has made a dramatic entrance to the AI race, committing to spend hundreds of billions of dollars in the next few years on chips and data centers-largely as part of deals to supply computing capacity to OpenAI, the maker of ChatGPT.
The speed and scale of its moves have unsettled some investors at a time when markets are keenly focused on the spending of so-called hyperscalers-big tech companies building vast data centers.