Oracle’s ambitious venture into artificial intelligence has led to a staggering loss of over $300 billion in market value since its September partnership with OpenAI, prompting discussions about the so-called “Curse of ChatGPT.” Following the $300 billion deal announcement, Oracle’s stock plummeted, while major indexes like the Nasdaq and Dow remained stable, highlighting Oracle’s unique downturn. Analysts equate Oracle’s loss to the market cap of General Motors or twice that of Kraft Heinz. Investor concerns stem from Oracle’s heavy financing of AI infrastructure with debt, which positions it as a public proxy for OpenAI’s goals, particularly as it races toward artificial general intelligence (AGI). Despite forecasting a cloud revenue of $166 billion by 2030, signs of investor skepticism are evident, as demand for credit-default swaps on Oracle’s debt has risen. This volatility in AI-related investments underscores the unpredictable nature of market reactions to AI partnerships.
Source link
