Oracle’s AI Capex Gamble Sparks Debt Concerns as Tech Giants Race for Data Center Dominance

Jimmy Cramer warns Oracle’s aggressive AI infrastructure spending could destabilize the hyperscaler boom. The company’s partnership with OpenAI exposes balance sheet vulnerabilities, with $48 billion in long-term debt raising bond market alarms. "Oracle can’t risk blowing up its balance sheet for Sam Altman," Cramer noted, suggesting the firm lacks the financial discipline of cloud rivals.

The data center arms race now pits Amazon, Microsoft, Google, Meta and Oracle in a cash-burning showdown. Cramer attributes plunging sector valuations to "reckless, imprudent" infrastructure investments. OpenAI’s venture-backed spending spree compounds the pressure, forcing competitors to match its unsustainable pace.

Industry observers note the strategic calculus: hyperscalers are overbuilding to protect Core businesses. Oracle’s cloud infrastructure push—while technologically impressive—faces scrutiny as interest payments consume 23% of operating cash flow. The coming quarters may reveal which players can sustain this capital-intensive game.