Oracle now expects to spend $15 billion more on capital expenditure this financial year|Peter Kaminski|CC BY 2.0

Cloud computing firm Oracle’s shares fell more than 11% as it faces growing investor anxiety over the massive sums it pours into building data centers to meet AI demand. 

The company reported quarterly revenue of $16.1 billion, up 14% from last year, while cloud revenue jumped 34%. Yet both revenue and operating income at $6.7 billion, up 10% fell slightly short of expectations.

Oracle’s stock is now down over 30% since early September.

Investors worry about Oracle’s rising costs. Its capital spending surged to $12 billion, nearly $3.7 billion above estimates. It now expects to spend $15 billion more this financial year.

Still, demand looks strong. Oracle’s backlog climbed to $523 billion, boosted by commitments from Meta, Nvidia, and others, including OpenAI’s massive $300 billion deal. 

But analysts say investors want clearer signs that these bookings will translate into profits.