Oracle's $638 billion AI backlog meets a credit rating downgrade to BBB- as the company scrambles to raise $50 billion while preserving investment-grade

Oracle stock has dropped over 25% YTD as $56 billion in AI capex drives negative free cash flow and pushes debt to $130 billion, rattling tech investors.

S&P cut Oracle to BBB-, one notch above junk, as $250 billion in AI data-centre spending burns cash and bond investors price the debt closer to junk levels.