Oracle’s AI debt pushes Wall Street to the limit, WSJ says

Oracle’s (ORCL) $300B deal with OpenAI is testing Wall Street’s appetite for debt tied to the data-center boom, Peter Rudegair and Berber Jin of The Wall Street Journal reports. Banks, such as JPMorgan Chase (JPM), have spent months trying to spread the risk of billions of dollars in loans they made to build data centers leased to Oracle in Texas and Wisconsin, people familiar with the matter told the Journal. The sheer size of these debt packages has pushed these banks to the limit with Oracle, resulting in clogged bank balance sheets and constrained financing prospects of future projects related to Oracle and OpenAI.