Oracle(US:ORCL) Zheng Quan Shi Bao·2025-09-25 23:15Core Insights - The demand for artificial intelligence (AI) computing power is driving a surge in financing among tech giants [1][2] - Oracle launched an $18 billion investment-grade bond issuance, marking the second-largest transaction in the U.S. bond market this year, with peak subscription demand nearing $88 billion [1][2] - Major tech companies like Alphabet and Apple are securing long-term funding to invest in AI and cloud computing [1][3] Group 1: Oracle's Bond Issuance - Oracle's recent bond issuance of $18 billion is part of a larger trend, with total financing exceeding $25 billion this year [2] - The bond issuance includes six maturity types, with a notable 40-year bond yielding 6.141%, significantly higher than the 4.771% yield of comparable government bonds [2] - Oracle's CEO reported a 359% year-over-year increase in remaining performance obligations, reflecting strong demand for AI-driven cloud infrastructure [2] Group 2: Other Tech Giants' Financing Activities - Alphabet completed a $5 billion bond issuance in April, while Apple issued $4.5 billion in May, both aimed at funding AI and quantum computing initiatives [3] - Chinese tech companies are also engaging in bond issuances, with Baidu and Tencent raising significant amounts to bolster their AI capabilities [3] Group 3: AI Infrastructure Competition - Tech giants are in a competitive race to build AI infrastructure, with Alibaba planning to invest $54 billion in AI infrastructure development [4] - Nvidia and OpenAI announced a strategic partnership to build AI data centers, with Nvidia potentially investing up to $100 billion [4][5] - Meta plans to invest at least $600 billion in data centers and infrastructure by 2028, indicating a significant increase in capital expenditures [5] Group 4: Future Projections and Market Impact - Global spending on AI data centers and chips is projected to reach $2.9 trillion by 2028, with a significant portion expected to be financed through debt [5] - Analysts suggest that the race to develop superintelligent AI will define the next technological era, with infrastructure investments being crucial for success [5]