Oracle Shares Slide as Doubts Grow Over Artificial Intelligence Returns

Oracle shares plunged by around 13% in a single session, triggering a broader selloff across the technology sector as investors reacted to heavy spending and weaker profit outlooks tied to artificial intelligence investments.

The decline has renewed questions about how quickly Oracle can generate meaningful returns from its ambitious artificial intelligence strategy, even as many business leaders view AI as a long-term growth engine with limited short-term productivity gains.

This year, Oracle made a bold move into AI infrastructure through a massive partnership with OpenAI, reshaping its position in the cloud computing market but also increasing its exposure to execution and financial risks.

Market concerns intensified as the deal closely linked Oracle’s performance to OpenAI’s competitive standing, particularly amid rising pressure from rival technology firms.

At the same time, investors have been reducing exposure to Oracle’s bonds due to worries over debt-funded expansion, pushing credit risk indicators to their highest levels in at least five years.