Oracle’s $300B AI deal pushes Wall Street lending to limits

Oracle’s $300 billion megadeal with OpenAI is testing the limits of Wall Street’s appetite for debt tied to America’s data-center boom

Oracle’s $300 billion AI data-center venture with OpenAI has pushed major lenders like JPMorgan Chase to their single-counterparty exposure limits, clogging balance sheets and slowing related project financing. Some developers, such as Crusoe, have shifted to leasing to Microsoft instead to secure funding. The Wall Street Journal reported that these constraints are limiting investor appetite for the debt fueling America’s data-center boom.

Morgan Stanley analysts project Oracle will require more than $100 billion in additional funding between 2027 and early 2028, after raising about $50 billion in 2026. They warn this could strain various fixed-income markets, especially given Oracle’s higher debt load, cash burn, and reliance on OpenAI. This comes as AI infrastructure investment needs are expected to exceed $3 trillion by 2028, with big tech funding only about half.

Wedbush analysts see Oracle in the ‘early innings’ of a generational AI opportunity, supported by its partnerships and differentiated cloud architecture, predicting a shift from capex concerns to a long-term growth narrative. In contrast, Morgan Stanley trimmed its price target over cost and margin questions, while cautioning on high capital spending and legal challenges. This split reflects broader uncertainty over whether AI demand will meet expectations and whether Oracle can execute effectively.

Reports from Bluefin Research say Oracle canceled a $1.05–$1.4 billion order for 300–400 Nvidia-powered server racks from Super Micro, amid allegations against the supplier’s co-founder over illicit sales to China. While Oracle has not confirmed the cancellation, analysts suggest it may be a supplier decision within an ongoing expansion rather than a slowdown in AI demand. Still, the move rattled investors, with Oracle shares falling up to 6% on the news.

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