By Nick Farrell
Publication Date: 2025-11-19 09:12:00
Big Red’s big AI punt keeps destroying his own rating
Oracle’s market value has fallen like a greased ferret since September 10, when it announced its $300 billion deal with OpenAI and saw about $315 billion disappear.
Rivals in the Nasdaq Composite, Microsoft and the US software index Dow Jones have barely moved, making Oracle’s loss of almost $60 billion look bleak. An “amazing quarter” cost Big Red about as much as a General Motors or two Kraft Heinz.
Investors are nervous about Big Red’s bet on a debt-financed data farm at OpenAI. Analysts are looking up from their dusty books and fearing that Oracle is becoming OpenAI’s proxy in the U.S. public markets.
The theory is that OpenAI is looking for AGI and that only Oracle can scale the computing power required. The company has the lowest upfront costs and fastest path to revenue among hyperscalers because it leases its data centers rather than owning them.
Another view is that…
