Oracle’s stock surged significantly this week, driven by its partnership with OpenAI, which is investing billions in AI and data center infrastructure. This collaboration led to Oracle’s largest single-day stock increase in over three decades, with Oracle securing multiple multibillion-dollar contracts, including a major deal to expand U.S. data center capacity for OpenAI.
OpenAI plans to invest $300 billion in computing power over five years, influencing major players like Microsoft, Broadcom, and Nvidia, all of which have seen substantial stock increases since the advent of ChatGPT. Despite Oracle’s impressive backlog reaching $455 billion, concerns arise regarding heavy dependence on OpenAI.
OpenAI, while generating $10 billion in annual revenue, has yet to post profits and is restructuring to become a public benefit corporation. Analysts remain cautious about Oracle’s long-term position in the AI sector compared to tech giants like Amazon and Google.
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