By Timothy Green, The Motley Fool
Publication Date: 2025-12-02 15:45:00
A mega-deal with OpenAI looks riskier than it first seemed.
It was pure euphoria in September when oracle (ORCL +0.08%) reported its backlog more than quadrupled to a staggering $455 billion. A reported cloud computing deal worth $300 billion OpenAI contributed significantly to this increase. Oracle shares initially rose sharply as investors focused on forecast revenue growth while ignoring some thorny questions about the Oracle-OpenAI partnership.
After a 23.1% decline in November, according to data from S&P Global Market Intelligence, Oracle’s post-earnings gains have now been completely wiped out. The optimism quickly evaporated and gave way to concerns about debt, OpenAI’s solvency and the possible bursting of the AI bubble.
Image source: Getty Images.
A debt-fueled bet on OpenAI
Oracle’s balance sheet is already burdened with debtSo it’s no surprise that red flags are being waved as the company ramps up borrowing to build massive AI data centers. Oracle sold $18…
