Oracle made a $300 billion bet on OpenAI. It’s paying the price.
Oracle might have an OpenAI problem.
Oracle (ORCL) stock has tumbled over 40% from its September peak, erasing more than $360 billion from its market capitalization. Nearly $67 billion of that decline occurred on Thursday alone, as Oracle’s second quarter results failed to assuage a key concern for investors — that the company is too heavily reliant on OpenAI (OPAI.PVT).
Oracle’s AI-fueled growth targets outlined in its first quarter sent the stock to a record on Sept. 10, briefly making its founder, Larry Ellison, the world’s richest man. In September, the company told investors its remaining performance obligations (RPO) — or the value of its future revenue from customer contracts signed — had soared nearly 360% to…
