Oracle has been sued by bondholders who claim the company concealed how much debt it would need to sell to support the AI buildout for Oracle's $300 billion OpenAI deal.

First reported by Reuters, the suit was filed on Wednesday, January 14, in New York, on behalf of investors who purchased senior notes and bonds during Oracle's $18bn debt financing round in September 2025.

The bond offering followed shortly after Oracle signed a cloud contract with OpenAI, valued at $300 billion over a period of five years, for which Oracle would need to significantly expand its compute capacity, both through the Stargate project and separately, for OpenAI to provide 4.5GW of capacity.

As a result, Oracle sought new sources of funding to enable the buildout.

Plaintiff, the Ohio Carpenters' Pension Plan, argues in the suit that the bond offering documents did not disclose that Oracle would need additional debt beyond the $18 billion and that it was already in the process of seeking additional funding.

According to the suit, purchasers of the bonds then suffered "significant losses and damages" after media reported on a later $38 billion debt offer in October 2025, which then sent the price of the bonds lower.

The $38bn offering was specifically for two data centers developed by Vantage Data Centers, part of the Oracle-OpenAI agreement.

"The bond market's reaction to Oracle's additional debt was swift and bracing, Oracle’s senior notes began to trade with yields and spreads similar to lower-rated issuers as investors began to demand higher yields due to perceived credit risk," the bondholders said in the suit.

According to The Information, a $4 billion segment of the bond offering is now trading at 95.75 cents on the dollar, a loss of around $170 million on those securities.

The defendants listed in the suit include Oracle, CTO and chairman Larry Ellison, CEO Safra Katz, and EVP and chief accounting officer Maria Smith. Also included are the underwriters of the bond offering.

DCD has contacted Oracle for comment.

This is the second AI-infrastructure-related lawsuit filed this week. CoreWeave shareholders filed a class action against the neocloud on January 12, claiming that they had been misled about the company's ability to meet customer demand for compute capacity.