Oracle stock rose 6% at midday as reports emerged that OpenAI has recently been in talks to raise capital at a $1.2 trillion valuation. The move underscores how closely Oracle's fortunes are tied to OpenAI, its key AI partner. Last September, Oracle signed a $300 billion deal to provide computing power for OpenAI, a transformative agreement that elevated Oracle to a leading hyperscaler but also raised concerns that it had overstretched itself building expensive AI infrastructure for a customer many believed could face funding difficulties. Those fears had weighed on Oracle's debt, pushing credit default swap spreads higher, and the market was left unimpressed by recent news that OpenAI would push back its initial public offering from 2026 to at least 2027. If the funding speculation proves credible, it would be excellent news for Oracle and help de-risk its AI infrastructure build-out plans.
Oracle CorporationReport of OpenAI raising capital at a $1.2T valuation would de-risk Oracle's AI infrastructure build-out tied to its $300B OpenAI deal.
NVIDIA CorporationOpenAI is reported to be in talks to raise capital at a $1.2 trillion valuation.
