OpenAI is rapidly transforming into a tech powerhouse, seeking $100 billion in new funding and with a valuation reaching $830 billion. Major partners Microsoft (NASDAQ: MSFT) and Oracle (NYSE: ORCL) have committed significant capital to support OpenAI’s cloud computing demands, with total deals amounting to over $550 billion. Microsoft, having invested since 2019, holds a 27% stake and has engaged in $250 billion commitments for its Azure platform. In contrast, Oracle’s recent $300 billion deal highlights its competitive positioning, although it relies on debt financing, raising concerns over its profitability amidst high expenditures.
While Microsoft benefits from strong cash flow and a diversified customer base, Oracle’s heavy reliance on OpenAI introduces greater risk. Investors may find Microsoft a more stable investment compared to Oracle’s increasing vulnerability. For those seeking alternatives, the Motley Fool suggests exploring 10 high-potential stocks, positioning Microsoft alongside top-tier opportunities.
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