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Oracle (NYSE:ORCL) could become a weak link in the AI boom if OpenAI runs into trouble, according to Council on Foreign Relations senior fellow Sebastian Mallaby.
"If OpenAI runs into trouble, I think we can say that there's a good chance that Oracle may also run into trouble," Mallaby said on CFR's The Spillover podcast, pointing to Oracle's heavier debt load and dependence on OpenAI.
The warning comes as OpenAI CEO Sam Altman says he is seeing signs of "unsustainable silliness" in the wider compute buildout.
Mallaby said Alphabet, Amazon, Microsoft and Meta entered the AI boom with stronger balance sheets and more room to fund expansion internally. Oracle, by contrast, has relied much more heavily on borrowing to finance its data-center buildout.
#oracle #finance #runs
Oracle (NYSE:ORCL) could become a weak link in the AI boom if OpenAI runs into trouble, according to Council on Foreign Relations senior fellow Sebastian Mallaby.
"If OpenAI runs into trouble, I think we can say that there's a good chance that Oracle may also run into trouble," Mallaby said on CFR's The Spillover podcast, pointing to Oracle's heavier debt load and dependence on OpenAI.
The warning comes as OpenAI CEO Sam Altman says he is seeing signs of "unsustainable silliness" in the wider compute buildout.
Mallaby said Alphabet, Amazon, Microsoft and Meta entered the AI boom with stronger balance sheets and more room to fund expansion internally. Oracle, by contrast, has relied much more heavily on borrowing to finance its data-center buildout.
#oracle #finance #runs
3 hours ago
