Oracle shares dropped 11% in extended trading after the company reported quarterly revenue below expectations, despite strong demand for its AI infrastructure.

The company posted $16.87 billion in revenue, up 14% year-over-year, with cloud revenue reaching $7.98 billion and cloud infrastructure up 68%, but software revenue fell 3%, missing estimates.

Oracle’s remaining performance obligations soared 438% to $523 billion, boosted by commitments from major clients including Meta and Nvidia.

Investors are concerned about rising debt and $50 billion in expected capital expenditures for AI buildouts, though Oracle says it plans to maintain its investment-grade rating and raise less money than analysts expect, CNBC has reported.

The quarter also included a $2.7 billion gain from selling chip designer Ampere, reflecting Oracle’s shift to a “chip-neutral” strategy while expanding AI capabilities and appointing new co-CEOs.