Oracle’s stock dropped 3% following the company’s announcement of plans to raise $50 billion to fuel its artificial intelligence infrastructure rollout. The news came amid growing investor concerns over Oracle’s aggressive expansion strategy and mounting debt. The company has not yet responded to requests for comment. However, a note from Oracle’s leadership indicated that layoffs are among several potential paths being considered to manage its financial position. Other options under review include asset divestitures and vendor financing, both aimed at reducing the company’s debt burden. Oracle has made significant bets on AI, particularly in building out data centers and infrastructure to support AI workloads. In September, it raised $18 billion through a bond sale and secured a landmark $300 billion partnership with OpenAI. While these moves underscore its ambition to become a major player in the AI space, they have also raised red flags among investors. The stock has fallen 50% since reaching its peak in September, reflecting mounting skepticism about the company’s ability to generate returns from such heavy investments. It dropped 11% in December after reporting slightly lower-than-expected revenue, despite strong performance in other areas. Michael Field, chief equity strategist at Morningstar, said the current environment marks the “end-game for AI-exposed stocks,” where companies must either succeed or fail decisively. “It’s do or die,” he told CNBC. “We’re seeing firms like Oracle and Microsoft go all-in on AI, and that binary outcome is forcing investors to either commit or exit.” Field noted that Oracle’s strategy—raising substantial debt and issuing new shares—could dilute existing shareholders’ stakes, contributing to investor unease. “The problem for Oracle,” he said, “is that it’s taking on more debt and diluting ownership, which doesn’t sit well with many investors.” The AI infrastructure buildout has become a key focus during this earnings season. On Thursday, Microsoft shares fell 10% despite strong overall results, as cloud revenue growth for its Azure platform came in slightly below expectations. In contrast, Meta’s stock surged 8% after reporting significant AI spending, signaling that investors are closely watching how companies allocate capital in the AI race.