Below is a story about how Oracle is starting a four-day AI World event in Las Vegas, but it is expected to calm investors after a wild stock market rally.
The company’s cloud business has grown rapidly, but some investors are wondering if Oracle is sacrificing profits in the name of growth. At the event, many are reportedly seeking confirmation that the rally will continue and it’s not just a bubble.
The event comes just as concerns are building that Oracle is sacrificing profitability for growth from renting computing power to AI companies like OpenAI. Last week, the Information reported Oracle’s cloud margins are lower than many on Wall Street are modeling, sending Oracle shares down as much as 7.1% on Tuesday. Even though the stock quickly recovered the losses, there are lingering questions about the economics of the business, which Oracle has forecast will see revenue jump 700% in the coming three fiscal years.
https://finance.yahoo.com/news/oracle-event-chance-show-370-103500327.html
Below is more on how Oracle Cloud plans to deploy 50,000 AMD AI chips starting next year, thus challenging Nvidia’s dominance in the cloud AI market.
The company will leverage AMD’s new Instinct MI450 chips, which scale into large AI systems. The project also supports Oracle’s and OpenAI’s billion-dollar collaboration and naturally strengthens AMD’s position alongside Nvidia.
More on these can be found
Oraclein osake nousi, kun yhtiö vahvisti pilvipalvelusopimuksen Metan kanssa.
Toimitusjohtaja Clay Magouyrkin mukaan Oracle solmi 30 päivässä 65 miljardin dollarin arvosta uusia pilvi-infrastruktuurisopimuksia.
Yhtiö odottaa tekoälyyn perustuvan tietokantaliiketoimintansa kasvavan voimakkaasti vuoteen 2030 mennessä.
"Key Points
- Oracle pointed to a cloud deal from social media company Meta.
- At the same time, Oracle indicated that its core database and data platform business will grow.
- In 30 days during the current quarter, Oracle contracted $65 billion in new cloud infrastructure commitments, Oracle CEO Clay Magouyrk said on Thursday."
https://www.cnbc.com/2025/10/16/oracle-confirms-meta-cloud-deal-.html
Oracle’s stock fell yesterday (Friday) as investors began to doubt the company’s ambitious artificial intelligence goals.
The firm promises a staggering $20 billion in AI revenue by 2030. However, analysts urge caution, although long-term faith remains strong.
"Key Points
- On Thursday, Oracle said it expects $20 billion in artificial intelligence revenue in the 2030 fiscal year, up from up from $3 billion in fiscal 2026.
- But after a huge run in the stock, Wall Street showed signs of skepticism on Friday, with investors pushing the shares down 7%.
- “It feels like the stock may take a bit of a breather here,” Rishi Jaluria, an analyst at RBC Capital Markets, told CNBC’s Seema Mody."
https://www.cnbc.com/2025/10/17/oracle-stock-drops-7percent-as-companys-ai-conference-brings-out-skeptics.html
The article below discusses Oracle comprehensively. From the old world of decades-old enterprise software to a partner in the AI era. The company’s cloud and database operations have risen to the core of the LLM boom, and Larry Ellison, who reportedly kept things in hand during these new turns, is naturally highlighted in this story.
The article reviews its history, for example, how an early investment in SQL made Oracle a kind of standard. Then it discusses how the company expanded into a versatile player through acquisitions.
It also highlights how Oracle stands out in the cloud with its unified architecture, flexible models, and the opportunities it offers. Various AI players are largely seen as guarantors of Oracle’s future, and probably vice versa.
The market has been enthusiastic about the company recently, as evidenced by the strong rise in its stock price, but according to the article, a big question is whether the company can realize the full potential of OCI (Oracle Cloud Infrastructure) and whether Oracle can maintain decent margins?
The article below also breaks down how Oracle built its position and why it is what it is today. In places, the text probably goes over many people’s heads – at least mine, but that’s always the case with these things. 
Oracle is back at the center of the tech conversation. For nearly fifty years, it evolved from a fast-moving innovator into the dependable backbone of enterprise software, powering everything from government databases to healthcare systems. Then came September 2025, and over the course of an earnings call, the narrative changed. This is the story of Larry Ellison’s Oracle, its decades-long transformation, and how it built a cloud tailor-made for the age of AI.
"Key insights
- Innovation and growth: An early bet on SQL and portability fueled Oracle’s growth in the 1980s and made its database the standard for enterprise data systems worldwide.
- Vertical expansion: Through the years, Oracle transitioned from its database core to an enterprise suite of applications, eventually offering the full stack after decades of acquisitions.
- Cloud strategy: Oracle has differentiated its cloud infrastructure with standardized architecture, flexible public and dedicated deployments, and embedded database services in partner clouds.
- AI positioning: Its Q1 2026 earnings announcement came with massive multi-year AI commitments, shifting the focus and narrative from enterprise backbone to AI partner.
- Larry Ellison: Co-founder, longtime CEO, and now CTO and Chairman – Ellison is synonymous with Oracle’s success and its transformation into the company it is today."
1 Like
Is Oracle working smarter than my Amazon?
The tweeter is likely pondering that Amazon’s AWS’s own chip strategy weakens its competitiveness and customer flow in AI. Without a broad developer community, cost advantages disappear, and then Nvidia takes the business.
If AWS does not adapt to industry standards quickly, then growth and profit expectations may suffer… unlike Oracle, which plays by market rules. 
https://x.com/thexcapitalist/status/1981818704733127116
1 Like
The tweet below indicates that the protection costs reflecting Oracle’s debt risk are rising rapidly.
Investors apparently fear that the company’s large AI investments will further increase the debt burden and weaken its financial security, which is reflected as growing concern in the markets.
https://x.com/Mayhem4Markets/status/1989873872208838943
The article below discusses, among other things, how Oracle is financing its massive AI infrastructure construction primarily with debt, including an $18 billion bond issuance and construction loans from banks for data centers, for example. The company’s debts have risen to approximately $112 billion, and analysts estimate the company will take on an additional $20–30 billion in debt annually. A key factor behind this is the approximately $300 billion OpenAI agreement for computing capacity.
The debt leverage is making credit investors nervous, which is reflected in the rising cost of Oracle’s 5-year credit default swaps. The market is pondering, for example, whether the demand for AI services and the over $500 billion order backlog are sufficient to justify the investments. Oracle can also seek financing through other means, such as capital increases, partnerships, or vendor financing, but in any case, according to the article, the company clearly needs more cash flow to maintain the same pace.
https://www.cnbc.com/2025/12/09/oracles-ai-fueled-debt-load-has-investors-on-edge-ahead-of-earnings.html
Oracle reported strong growth, especially in cloud services, although revenue slightly missed forecasts. Growth in cloud infrastructure and SaaS services was strong, but the multicloud database business was particularly the company’s fastest-growing area. On the other hand, software sales were slightly down from last year.
Results improved significantly; net income and earnings per share rose clearly. Oracle proudly highlighted its new customers, such as Meta and NVIDIA, and its commitment to neutrality regarding chip suppliers. The company also stated that it had surpassed competitors regionally in its cloud offerings.
https://x.com/earnings_guy/status/1998861639316013203
EDIT:
But is Oracle’s debt situation in order?
https://x.com/patientinvestt/status/1998883474296672277
1 Like
Here’s an article about Oracle’s stock having fallen nearly 40 percent from its September peak, which has wiped over $360 billion off its market value.
The reason is concern about the company’s strong reliance on OpenAI, which is committed to using Oracle’s services worth billions. OpenAI’s solvency has been questioned, and competition with models like Google Gemini is intensifying.
Oracle’s large investments and debt worry investors. However, management assures that the infrastructure can be used for other customers if needed, but this did not fully alleviate investors’ concerns.
2 Likes
Doesn’t look exciting, but I disagree with “you in trouble”. The backlog is over 500 billion dollars, and never before have AI infrastructure companies been valued based on cash flow!
Building data centers is expensive, and because of that, cash flow is negative. If and when the margin in these projects is around 40%, then for all I care, the cash flow can be negative by 20 billion. Because that will turn into 8 billion in a couple of years and be distributed to us shareholders as dividends.
… I don’t like that dividends are currently being paid with borrowed money. I believe, and above all hope, that it will be discontinued. If that happens, it will offer the next good buying opportunity!
3 Likes
The article below highlights the familiar story of how Oracle is investing so heavily in AI and how investors are starting to get nervous about it.
However, the company plans to continue increasing investments aggressively, financing them largely with debt, and has committed itself to massive, up to $248 billion, lease agreements for data centers.
A slight disappointment in cloud revenue added to doubts about the sustainability of the AI hype. Furthermore, debt arrangements are under some pressure, and the credit rating is threatening to weaken, even though Oracle assures it will keep its finances in check.
1 Like
Here’s a story about how Oracle’s stock fell because it was reported that Blue Owl Capital had withdrawn from a $10 billion Michigan data center project.
Blue Owl was concerned about Oracle’s debt, financing terms, and local politics, but of course Oracle denied the project was jeopardized and said the project was progressing on schedule with another investor.
"Key Points
- Oracle stock slid after a report that Blue Owl Capital won’t back a $10 billion data center for OpenAI.
- The cloud company later said that the project remains “on schedule” but that Blue Owl was out of funding talks.
- Oracle has $248 billion in lease commitments for data centers and cloud capacity commitments over the next 15 to 19 years."
https://www.cnbc.com/2025/12/17/oracle-stock-blue-owl-michigan-data-center.html
2 Likes
Oracle and OpenAI have received approval in Michigan for a 1.4-gigawatt Stargate data center, which will be powered by DTE Energy.
According to the tweet, the scale of the project is comparable to that of a nuclear power plant. Their collaboration in the United States is growing to over 8 gigawatts and $450 billion in investments, and Oracle is responsible for the energy costs.
https://x.com/StockSavvyShay/status/2001735832835948693
1 Like
The market was buoyed by news of an arrangement concerning TikTok in the United States, as well as funding plans linked to OpenAI; specifically, if ByteDance sells a majority stake in TikTok’s US business to an Oracle-led consortium, Oracle will secure a significant and long-term cloud customer.
The article states that the massive funding planned by OpenAI, in turn, reinforces the perception that capital continues to flow heavily into AI ventures.
https://www.investing.com/news/stock-market-news/oracle-shares-jump-on-tiktok-deal-progress-openai-fundraise-talks-4416368
2 Likes
Below is a story about Oracle, stating that the company is a figurehead of the AI boom and, at the same time, a cautionary tale.
The article notes how this year has been a real rollercoaster for the company; the excitement of the early year and the massive Stargate project lifted the stock to record highs, so to speak, but now there are signs of a hangover in the air. Investors are terrified by the company’s bloated, massive debt load and, in addition, the huge data center investments.
The markets are now pondering whether AI is an eternal growth engine or a bursting bubble. According to the article, Oracle has become a symbol of this in a way: although revenue is promised in abundance, free cash flow is tight, and the risks of the OpenAI partnership are also a concern.
The stock is down significantly from its peak, although the year is still in the green.
“As these firms such as Oracle have issued more debt, they’ve become more leveraged, which from a credit perspective means they’re riskier,” S&P Global Market Intelligence analyst Gavan Nolan said, noting that CDSs have begun trading for the first time for even the “Magnificent Seven” tech firms with the highest credit ratings, like Microsoft (MSFT) and Alphabet (GOOG, GOOGL), in recent weeks.
Complicating matters for Oracle is its deal with OpenAI — a pain point for the stock. The ChatGPT developer accounts for the majority — at least $300 billion — of Oracle’s remaining performance obligations, a measure of future revenue from customer contracts — a detail that, once revealed, sent Oracle shares tumbling from their September peak as Wall Street questioned whether OpenAI can meet its ambitious revenue targets amid mounting competition from Google.
2 Likes
Here is another story about Oracle, discussing, among other things, how the new bosses have faced their baptism of fire as the stock is on track for its worst quarter since 2001 and the share price has melted by 30 percent, with investors doubting the company’s ability to handle massive AI investments and the associated debt.
This article also highlights how the OpenAI deal promises growth, but massive data center investments are eating up cash flow and requiring massive levels of debt.
Larry Ellison is still trusted, but on the other hand, the market is now fearing the price tag of hypergrowth and the erosion of profitability.
Turrin said that Oracle’s credibility in the market will hinge on the success of its AI build-out.
“Then customers start to look at this and say, wow, this company was trusted to build some of the largest training clusters in the world, and they’re delivering on them,” Turrin said. “We should take a look at that too and figure out what’s happening here.”
https://www.cnbc.com/2025/12/26/oracle-stock-on-pace-for-worst-quarter-since-2001-ai-concerns.html
1 Like
Oracle announced today that two long-standing board members, George Conrades and Naomi Seligman, are retiring.
Both have served in their roles for over 15 years, and this change reduces the size of the board to 12 members. According to the company, the departures are not due to any disagreements but are timed with the company’s broader transformation; in September, the CEO position was filled by two new leaders as Oracle invests heavily in AI and new data centers. Founder Larry Ellison will, of course, remain on the board.
https://www.cnbc.com/2026/01/09/oracle-announces-board-departures-george-conrades-and-naomi-seligman-.html
1 Like
Investors have sued software giant Oracle because they feel they have been misled.
The company took on a massive amount of additional debt to build data centers specifically for its collaboration with OpenAI, even though, according to the investors, it had suggested it would manage with less. This new debt eroded the value of previous investments, so investors are now demanding compensation from Oracle for withheld information and the decline in prices.
The bondholders said Oracle, Ellison, former Chief Executive Safra Catz, Chief Accounting Officer Maria Smith and 16 underwriting banks are strictly liable under the federal Securities Act of 1933 for those statements, and should pay unspecified damages.
2 Likes
