By Timothy Green
Publication Date: 2026-01-07 10:15:00
Oracle can move AI capacity quickly, but that may not matter.
oracle (ORCL 0.47%) Signs Mega Deals to Provide AI Infrastructure to Hundreds of Customers. The company’s remaining performance obligationsa metric that measures the value of signed customer contracts that have not yet been recognized as revenue reached $523 billion at the end of last quarter.
While Oracle has more than 700 AI customers, OpenAI accounts for most of this backlog. A reported $300 billion cloud infrastructure deal with the AI startup is responsible for much of the RPO growth Oracle has seen this year. Fulfilling this contract requires a massive expansion of AI data centers.
Image source: Getty Images.
The obvious question investors should ask is: What happens if OpenAI can’t pay? The company addressed this issue in its second-quarter earnings release in December, but the answer leaves much to be desired.
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