Oracle’s $300 billion deal with OpenAI is already a disaster in the making. Since September, Oracle’s stock has tanked, wiping out $315 billion in market value, more than the entire deal’s worth. Credit default swap costs have doubled, signaling Wall Street fears Oracle may not meet its obligations. The company’s debt is ballooning, and OpenAI, with only $13 billion revenue in 2025 and no profit, can’t realistically pay the $60 billion annually promised. If OpenAI’s funding dries up or the hype fades, Oracle will be stuck owning massive AI infrastructure that nobody can pay for.
Building data centers on hope and hype?
Oracle’s basically throwing good debt after bad.
This deal might crash harder than an AI bot with a bug hahaha.
On Point!