Oracle’s OpenAI reliance faces scrutiny as debt-fueled AI buildout raises worries

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Months after rel=”dofollow” href=”https://economictimes.indiatimes.com/oracle-financial-services-software-ltd/stocks/companyid-3160.cms” target=”_blank”>Oracle‘s $400 billion-plus contract backlog ignited a stock-market frenzy, the enthusiasm has given way to doubts about its rel=”dofollow” href=”https://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cms” target=”_blank”>reliance on OpenAI and debt-fueled datacenter buildout, which will dominate its earnings on Wednesday.

A smaller player in the cloud market for a long time, Oracle this year staked claim as one of the bigger providers of the rented computing power essential for generative AI thanks to its tie-up with ChatGPT-creator OpenAI.

It is vying with industry giants Amazon.com, Microsoft and Google for a piece of the lucrative…



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Oracle’s OpenAI reliance faces scrutiny as debt-fueled AI buildout raises worries



Months after rel=”dofollow” href=”https://economictimes.indiatimes.com/oracle-financial-services-software-ltd/stocks/companyid-3160.cms” target=”_blank”>Oracle‘s $400 billion-plus contract backlog ignited a stock-market frenzy, the enthusiasm has given way to doubts about its rel=”dofollow” href=”https://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cms” target=”_blank”>reliance on OpenAI and debt-fueled datacenter buildout, which will dominate its earnings on Wednesday.

A smaller player in the cloud market for a long time, Oracle this year staked claim as one of the bigger providers of the rented computing power essential for generative AI thanks to its tie-up with ChatGPT-creator OpenAI.

It is vying with industry giants Amazon.com, Microsoft and Google for a piece of the lucrative…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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