Overview

• Moody’s highlighted counterparty concentration as a primary risk in Oracle’s newly signed AI agreements, referencing roughly $300 billion in contracts without naming customers.
• Analysts forecast debt rising faster than EBITDA with leverage nearing 4x and expect negative free cash flow for an extended period as data-center buildouts ramp.
• Moody’s likened Oracle’s data-center expansion to one of the world’s largest project financings, underscoring execution and delivery risks tied to converting bookings into revenue.
• Oracle has said OCI booked revenue is set to surpass $500 billion, and reported AI infrastructure RPO of about $455 billion, up 359% year over year.
• The issuer rating remains Baa2 after a July outlook cut to negative, while reports question OpenAI’s capacity to fund a reported $300 billion deal and investors debate backlog quality as the stock gains about 81% this year.