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Oracle’s stock has fallen nearly 50 per cent since hitting a record in September.
Oracle's $300 billion Stargate deal with OpenAI is the key reason its stock is falling.
KEY POINTS
- Investors are concerned about circular financing, as OpenAI's funders are also its infrastructure providers.
- OpenAI missed internal revenue and user growth targets, heightening fears of contract affordability.
- Oracle's valuation is now tightly linked to OpenAI news, not its own financial performance.
- Oracle faces record-high debt protection costs, surpassing levels seen during the 2008 financial crisis.
COMPANIES
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