Oracle's AI Bet: Risks & Rewards
Update: 2025-12-09
Description
Oracle, once a minor player in cloud computing, has emerged as a major AI powerhouse, partnering with OpenAI for a significant share of the lucrative AI market. Oracles massive investment in AI infrastructure, estimated at over four hundred billion dollars this year, has raised concerns about OpenAIs funding and Oracles financial health. The AI booms lack of real-world adoption has led to a sell-off in Oracles shares and bonds, with credit default swaps reaching record highs. Despite these challenges, Oracle remains optimistic, projecting cloud infrastructure revenue to reach one hundred sixty-six billion dollars by 2030 and securing new deals with diverse customers, including a twenty billion dollar contract with Meta Platforms.
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