Overview
- Oracle’s stock fell about 13% on Thursday after weak forecasts and disclosures tied to its AI spending plan.
- The OpenAI partnership involves roughly $300 billion for AI data centers and infrastructure, with costs far above Wall Street expectations.
- Credit markets turned cautious as investors sold Oracle bonds and the company’s credit-default swaps rose to at least five-year highs.
- Oracle burned about $10 billion in cash in the first half of its fiscal year for AI investments and faced a potential market-value loss of more than $90 billion.
- Several firms downgraded the shares and cut targets, highlighting uncertain deployment timing and margin pressure as Oracle has not provided a detailed schedule or revenue outlook for the commitment.