Monday, December 22, 2025

Oracle: The Face of Growing Concerns in the AI Bubble

Oracle’s Rollercoaster Ride: AI Boom or Bust?

In 2025, Oracle (ORCL) became a focal point in the contentious debate surrounding AI’s potential. This year’s highs and lows reflect the ongoing uncertainty in tech investment.

Highlights:

  • Joint Venture Announcement: Oracle’s partnership with OpenAI and SoftBank, committing $500 billion to AI infrastructure, briefly propelled shares and made Larry Ellison the wealthiest person in the world.
  • Cloud Revenue Potential: Projected growth in cloud revenue, expected to reach $166 billion by 2030.
  • Debt Concerns: Oracle’s total debt rose by 40% to $124 billion, raising alarms about financial sustainability as revenue growth remains uncertain.

Despite having a promising start, Oracle’s stock fell over 40% from its September peak due to investor skepticism about AI’s true value. Key factors include rising debt and questions around OpenAI’s ambitious plans amidst fierce competition.

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