Oracle shares jumped 12 per cent after the company told investors its massive AI investment will become self-funding sooner than expected. CFO Hilary Maxson said Oracle expects $30bn in free cash flow by fiscal 2029, peaking capital expenditure by 2028. The company plans to limit further fundraising to $20bn between now and 2030.
Despite a 25 per cent year-to-date drop, Oracle's bonds rallied as it aims to compete with Amazon and Google in AI data centres. The company faces construction delays in New Mexico, Wisconsin, and Michigan, and its credit rating sits just above junk. Oracle recently raised $25bn in debt and $20bn in equity, and expects to deliver seven gigawatts of data centre capacity soon.
Source: Financial Times Companies · Summarized by HeadlinesBriefing