Oracle's 8% Bond Yields Are an Oracle Problem, Not an AI Problem
Oracle's rising bond yields do not mean that the AI trade is dead.
Overview
Last week, tech giant Oracle (NYSE: ORCL) made news by invoking "force majeure" in a bid to delay payment on the Project Jupiter data center campus it is developing.
The financial world's response was swift. Shortly after that news broke, the tech giant's bonds traded at yields above 8%. Those bonds mature in 2056, highlighting concerns about how the AI build-out will be financed over the long term.
Details
This news weighed on AI stocks broadly, but it shouldn't have. Oracle has asserted that its 2.45-gigawatt New Mexico data center will be completed on time, and that its financial obstacles do not reflect the entire AI industry.
Source
Originally published at www.fool.com.
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