Shocking stat of the day:
Oracle, $ORCL, has a debt-to-equity ratio of a whopping 520%.
This is more than double the ratios of Apple, $AAPL, and IBM, $IBM.
By comparison, Amazon, $AMZN, and Microsoft, $MSFT, have debt-to-equity ratios of 50% and 30%, respectively.
According to JP Morgan, Oracle’s $300 billion cloud infrastructure deal with OpenAI would require even more borrowing by the company.
Oracle may need to raise up to $100 billion in debt over the next 4 years to fund the contract.
The AI rush is reaching unprecedented levels.
