Shareholders sue Oracle over misleading statements related to $300 billion OpenAI data center build-out — disgruntled plaintiffs say the company lied about how much money it needed to borrow

Oracle is facing a class action lawsuit from bondholders who claim the company misled them about the need for borrowing to fund its AI infrastructure commitments with OpenAI. The company initially sold $18 billion in bonds but later issued an additional $38 billion, causing market concerns about increased credit risk. Despite still being rated investment grade by S&P and Moody's, Oracle's rating is just above junk status and under negative watch for potential downgrades. The lawsuit alleges that Oracle and its executives, along with underwriting banks, violated the Securities Act of 1933. The incident highlights the risks associated with aggressive borrowing for AI projects and the potential impact on investors and the broader AI industry.