Oracle shares slide as earnings fail to ease AI bubble fears

The cloud computing giant's revenue miss renews questions about its financial health.

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The company reported revenue of $16.1bn (£12bn) for the three months that ended in November, compared with the $16.2bn projected by analysts.

Revenue growth was still up 14%, with a 68% surge in sales at its AI business, Oracle Cloud Infrastructure (OCI), the company said.

OCI services major AI technology developers whose demand for Oracle's AI infrastructure helped the company's shares reach new highs in recent months but Wednesday's results failed to quell fears about a potential AI bubble.

In September, Oracle agreed a highly sought-after contract with ChatGPT-maker OpenAI, which agreed to purchase $300bn in computing power from Oracle over five years.