$Oracle(ORCL.US)Burry re-entered a direct short position on Oracle around $145 per share. Oracle shares previously jumped toward $350 during last year's AI rally before pulling back significantly over growing market concerns about data center debt burdens. While Oracle's future contract backlog grew 363% over the past year, Burry remains skeptical about its long-term financial path. He previously called Oracle's large spending strategy "a Homeresque own goal by a modern deity," arguing that the software firm took on unnecessary financial risks to chase cloud growth. Oracle's roughly $130 billion net debt has historically been a "red flag" for investors wary of aggressive capital allocation and the situation is now becoming more complicated, as cloud infrastructure providers dramatically increase capital spending to support the AI boom while the returns from those investments become ever more uncertain.

Meanwhile, Oracle's rising spending is putting pressure on its financial position. Net interest expense is gradually increasing, while free cash flow has fallen deeply into negative territory despite strong operating cash flow. Although operating income remains sufficient to cover higher borrowing costs and capital expenditures could theoretically be reduced, the market is growing more concerned about how long Oracle and its peers will need to maintain exceptionally high levels of spending to compete in the AI race. @Captain's Treasure