Oracle's Data Center Expenditures Surpass Forecasts

Deep News06-11

Oracle's reported quarterly capital expenditures exceeded expectations, raising investor concerns over the profitability of its artificial intelligence (AI) infrastructure business.

In the fiscal quarter ending May 31, the company's capital expenditures reached $15.9 billion, bringing the total for the full year to $55.7 billion. This figure exceeds Oracle's earlier projection of $50 billion in spending. Capital expenditure is largely a measure of data center outlays.

Long known for its database software, Oracle has transformed into a service provider offering computing power for AI workloads and is constructing data centers at a large scale for clients including OpenAI. To meet these capital requirements, the company has announced plans to raise $50 billion this year through a combination of debt and equity financing.

In a statement released Wednesday, Oracle noted that sales for its closely watched infrastructure business surged 93% to $5.8 billion. This growth was slightly faster than the 91% increase analysts had anticipated.

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