Oracle stock continued to slide on December 15, 2025. Investor anxiety centers on the massive financial commitments required for the company's aggressive AI and cloud infrastructure expansion.
Oracle revealed data center lease commitments approaching $250 billion. This figure marks a nearly 150% increase in just three months. The expansion primarily supports major contracts, including those with OpenAI.
This spending raises concerns about soaring capital expenditures. Oracle projects CapEx to reach $50 billion for the fiscal year, resulting in significant negative free cash flow.
Market nervousness intensified following reports of a key data center delay. A project for major client OpenAI is now delayed until 2028, citing labor and material shortages. This news amplifies fears regarding Oracle’s ability to execute on its $523 billion in remaining performance obligations.