Oracle $25 Billion Bond Sale Helps Ease Fears of AI Debt Wave

For weeks, Oracle Corp.’s debt has been trading like junk amid concerns that its artificial intelligence investments won’t pay off for years, if at all. On Monday, those fears appeared to dim after the software giant garnered record demand for a $25 billion bond sale.

The shift was triggered by Oracle’s Sunday announcement that it was raising about $25 billion of equity in addition to debt this year, reassuring investors that it wouldn’t strain its balance sheet too much as it funds big investments in data centers. The tech firm’s bonds and stock both gained for most of ...