Oracle, after betting big on AI as its golden ticket, is seeing its stock take a serious nosedive. We're talking about numbers not seen since the dot-com crash. Ouch! After hitting a high point in September, right when they were bragging about those new data centers for OpenAI, their shares have plummeted by roughly 30%. It looks like Wall Street is having second thoughts about Oracle's expensive AI bets, and honestly, I can't say I blame them.

You see, Oracle's been all-in on AI, with flashy announcements and huge investment plans. Remember the Stargate project? Back in January, it felt like they were trying to build something out of a sci-fi movie. Oracle's executive chairman, Larry Ellison, even showed up at the White House to talk about it. The plan included massive data centers, particularly one in Texas, summing up to almost 7 gigawatts of planned capacity and more than $400 billion investment over the next three years. But, as always, the devil is in the details.

The Plot Thickens

However, some troubling news surfaced. It turns out that Oracle's delaying some of these OpenAI data center projects, and not by a little. We are talking at least a year! Of course, that sent the stock tumbling. Plus, their recent earnings report wasn't exactly stellar. Revenue was weaker than expected, while their spending on big projects skyrocketed.

To put it in perspective, Oracle anticipates spending a staggering $50 billion in fiscal 2026. It's double what they spent last year! To finance it, they raised $18 billion by selling bonds, but that move also means they're swimming in more debt.

I have to admit, while Oracle's vision is ambitious, it's also incredibly risky. They're aiming for $225 billion in revenue by 2030, a massive jump from the $57 billion in 2025. AI is supposed to drive this growth, but with delays and increasing debt, I am starting to wonder whether they can pull it off. I mean, what if their core software business starts to fail?

Still, Oracle seems determined to make this work, but with project delays, a growing debt pile, and investors getting nervous, it's clear that this gamble is getting riskier by the minute.