Oracle's earnings also pulled down shares in other AI-related technology companies on Thursday. Nvidia's stock fell more than 3.5%, while shares of Advanced Micro Devices (AMD) were nearly 4% lower.

Oracle has spent years piling up debt to fund share buybacks, which raises the risk level of adding even more debt to the balance sheet. Thanks to heavy spending on AI infrastructure, Oracle ended the second quarter with about $108 billion in debt. That's up from $92.6 billion in May. The company completed an $18 billion bond sale in September.

Oracle shares sank 13% on Thursday, sparking a tech selloff as the company's massive spending and weak forecasts fanned doubts over how quickly the big bets on AI will pay off. The disappointing predi

Oracle’s stock fell more than 12% on Thursday on growing fears about the software giant’s massive AI spending — shaving more than $30 billion off co-founder Larry Ellison’s fortune. The Texas-based tech company’s stock tumbled to $194 a share from around $223 a share at the start of trading — wiping out $90 billion in market capitalization.

Oracle and other AI stocks tumbled on Thursday after the company reported surging expenditures related to its AI data center buildout, reinforcing concerns on Wall Street about debt-fueled spending on the fledgling technology.

Three months ago, Oracle Corp.’s scorching earnings outlook sent the shares soaring to their best day in three decades. But a quarter later, things look very different for the database

Oracle’s credit default swaps have surged to near-record levels as soaring AI spending and a $100 bn debt load fuel fears of rising credit risk across the tech sector.

Oracle was one of the heaviest weights on the market after analysts said they were surprised by how much the tech giant plans to spend on AI infrastructure.