Wall Street cools on Oracle's buildout plans as debt concerns mount: 'AI sentiment is waning'

Group 1 - Oracle's stock experienced a significant decline, losing one-third of its value after a record high increase of 36% two months prior, marking its worst month since 2011 [1] - The initial surge in Oracle's stock was driven by its strengthening relationship with OpenAI, but investor sentiment has shifted, raising concerns about the sustainability of the AI market and OpenAI's $300 billion commitment to Oracle over five years [2] - Analysts predict that Oracle will generate the least amount of free cash flow among major cloud companies in the GPU sector, leading to expectations of more creative financing solutions to support capital expenditures [3] Group 2 - Oracle is reportedly planning to raise $38 billion in debt sales to finance its AI initiatives, as confirmed by sources familiar with the matter [3]