Oracle Erases 20% of Value Year-to-Date as AI Spending Fears Clash With $300B OpenAI Deal

Oracle shares fell approximately 3.7% on Friday. This decline contributes to a year-to-date loss exceeding 20% of the company's market value.

Investors remain apprehensive about the massive capital expenditures required for AI and cloud infrastructure. Market participants expressed doubt regarding the timing of returns on these investments. Concerns also persist regarding the company's significant data center lease obligations.

Oppenheimer analysts upgraded the stock to Outperform, characterizing the selloff as a long-term buying opportunity. OpenAI recently secured $110 billion in new funding. This capital will help finance OpenAI's $300 billion compute contract with Oracle.