Chainfir Capital flags rising Oracle credit risk as AI spending strains balance sheet
ORCL•Chainfir Capital warned that AI infrastructure financing is increasing Oracle’s balance-sheet risks. Oracle sought $20 billion in financing, while borrowing costs rose and shares fell 8.8% to $119.22.
1. Financing and credit costs
Chainfir Capital warned that AI infrastructure financing is increasing balance-sheet risks, with credit markets demanding higher premiums from Oracle. A November 2 filing sought $20 billion, exhausting the fiscal 2027–2030 financing cap announced October 28 in five days. Oracle’s new 2046 senior notes were guided around 360 basis points over Treasuries, compared with roughly 265 basis points for its existing 2056 bonds the previous week.
2. Debt and shares
Oracle shares fell 8.8% to $119.22, reversing a nearly 11% rally after its investor day. Total borrowings reached $125.3 billion, nearly twice annual revenue, while fiscal 2026 free cash flow was negative $23.7 billion.
