Oracle shares rose in premarket trading, gaining about 2.6%, as the company moves forward with job cuts aimed at freeing up capital for artificial intelligence infrastructure. The stock had also climbed nearly 6% in the previous session, though it remains down roughly 25% year-to-date.
The company has begun notifying employees about a new round of layoffs affecting thousands across its global workforce. The restructuring is part of a broader effort to reallocate resources toward building data centers capable of supporting AI workloads.
Oracle is investing heavily to expand its cloud infrastructure, with plans to raise up to $50 billion through debt and equity. The funding will support growing demand from major AI customers, including Nvidia, Meta Platforms, OpenAI, Advanced Micro Devices, and xAI.
Investors have expressed concern about the scale of capital expenditures required for AI infrastructure, which could weigh on near-term profitability. However, analysts note that cost-cutting measures, including layoffs, may help improve operating efficiency and support long-term growth.
Oracle’s strategy reflects a broader trend among technology companies prioritizing AI infrastructure investment, even at the expense of short-term margins. As demand for compute capacity accelerates, companies are restructuring operations to align with the capital-intensive nature of AI-driven cloud services.
