By Yahoo Finance Video
Publication Date: 2025-12-31 12:30:00
00:01 Speaker A
Ali, I want to start here with Oracle’s partnership with OpenAI, because an analyst at BNP Parabos told Yahoo Finance that OpenAI’s potential insolvency for its AI infrastructure could be one of Oracle’s biggest risks. We’ve seen this recent sell-off. What do you think of it? Is OpenAI’s inability or ability to pay Oracle a big risk going forward?
00:39 Ali
It is indeed a big risk and thank you for having me. I think it’s a big risk. According to Microsoft’s financial reports, Open AI loses about $12 billion per quarter and their financial disclosures are not very transparent. And as Oracle’s largest customer, they could essentially be a source of risk. Um, one of Oracle’s largest capex components is building data centers for uh that are contracted with OpenAI, and an open question would be how to repurpose those data centers in the event that OpenAI doesn’t pay.
