Oracle Stock Pulls Back. Tech Giant Reportedly Weighs Bond Sale As New Stargate Plans Unveiled.

Core Insights - Oracle's stock experienced a decline following OpenAI's announcement of plans for five new data center sites as part of the Stargate AI infrastructure initiative [1][2] - OpenAI's Stargate initiative has committed over $400 billion in spending over the next three years, with Oracle set to develop the data centers and provide cloud-computing capacity [2][3] - Oracle is looking to raise $15 billion through the bond market to fund its AI cloud ambitions, with analysts projecting a significant increase in capital expenditures [5][6] Company Developments - Oracle's fiscal first-quarter earnings report revealed a backlog of cloud-related work amounting to $455 billion, a 359% increase year-over-year, largely attributed to OpenAI's partnership [4] - The company has signed a five-year deal with OpenAI valued at $300 billion for cloud computing services [4] - Oracle's stock surged earlier in the month but has since seen fluctuations, including a 3% drop on the latest trading day [9][10] Financial Strategy - Analysts expect Oracle to require debt to support its AI infrastructure investments, with projected capital expenditures for the current fiscal year at $34.2 billion, up from $21.2 billion and $6.9 billion in previous years [5][7] - The bond market strategy includes plans to issue debt in multiple parts, including a 40-year bond [6] - Despite recent stock fluctuations, Oracle's stock is up 84% year-to-date, with a 35% gain since the beginning of the month [12]