OpenAI spending spree powering much of tech. Oracle latest example
Openai CEO Sam Altman, on July 8, 2025 at Sun Valley in Idaho Allen & Co. He reaches a hut for the Sun Valley Conference and speaks to the media members.
Kevin Dietsch | Getty Images News | Getty Images
ProphecyThis week’s historical stock fluctuations marked the last episode in the story of a single private company that has dominated the technology view for almost three years: Openai.
Oracle’s explosion earnings report Openai, artificial intelligence was an important catalyst because of a large amount of money that launching artificial intelligence expects to spend on cloud computing technology in the coming years.
Becomes a familiar theme.
A week ago, Broadcom Stocks and software seller, analysts said it was an agreement of $ 10 billion to create special processors for a customer that Openai said, the share exploded almost 10%.
Between Tech’s Megacaps, Microsoft With the closest connection to Openai, he invested more than $ 13 billion in the company and served as a key cloud partner for six years. Nvidia’s Graphic processing units (GPU) are closely attached to Openai, the world’s most valuable company, because it is sitting in the heart of the development of large language model and is necessary to run large AI workloads.
Only these four companies – Oracle, Broadcom, Microsoft and Nvidia – the United Market borders have seen that at the end of 2022, with the launch of Chatgpt, the public has increased above $ 4.5 trillion. And these gains are a great reason why Nasdaq and S&P 500 closed on Friday recordings.
Openai’s great impact on some market experts are concerned about. The cash -burning initiative ruled by a non -profit parent continues to be a burning initiative.
The company’s valuation of $ 500 billion is supported by a small number of investors who betrayed that Openai will reign against heavy competition. Meta And Google In addition to other valuable newcomers, such as anthropics, any number of players from China.
“When loves Chatgpt, Openai is still not limited to snow in capital,” while Davidson analyst Gil Luria, CNBC, is still limited to capital. He said.
Luria, who proposes to hold Oracle shares, dug the company’s number on Wednesday because it was in the midst of a 36% jump.
In a three -month earnings report, Oracle said that he had signed a four billion dollar contract with three different customers during the term late Tuesday. One of them was with Openai, he said that he had previously agreed to develop 4.5 Gigawatt US data center capacity with Oracle.
Investors, Filing with SEC In June, Oracle signed a $ 30 billion cloud contract with an anonymous company that will start in two years. Cnbc one Wall Street Journal Report On Wednesday, Openai agreed to spend $ 300 billion for computer power for about five years, starting from 2027.
On the two -process day after the historical pop, Oracle’s shares withdrew and fell more than 6% on Thursday and more than 5% on Friday, because other investors began to share Luria’s concerns.
Openai’s new revelations about the gigantic cloud commitment gave a clearer feeling of Oracle’s expanding accumulation. Oracle said that performance obligations, a contracted income measure that has not yet been recognized, increased 359% to $ 455 billion compared to the previous year.
Luria, Oracle’s accumulation with a single customer concentration, especially “more than 90% of Openai came from Openai” “enthusiasm” significantly reduced “, he said.
Oracle did not respond to the request for comments.
Altman’s open wallet
Openai made a great commitment to several other cloud providers, Sunflower seed And GoogleA project chairman Donald Trump reportedly plans to put AI infrastructure investments in Stargate in January in January, which announced that it was a joint venture between Openai, Oracle and Softbank.
Luria, Package Service, “Sam Altman, these can not be made to make money without the need to sign very large controls,” he said.
Openai refused to comment.
Openai loses money for the predictable future, while the company expects the income increase to continue at a speed. CNBC confirmed that Openai allowed Openai to reach $ 125 billion by 2029 after reaching the annual repetitive income in June.
And on Thursday, Openai approached one step closer to formalizing the transition to a non -profit being. The company said that the non -profit parent will continue to supervise the business and have a share of more than $ 100 billion as a commercial organization has become a public interest company.
Openai, the last financing tour of $ 40 billion in order to secure the entire restructuring must be realized by the end of the year.
For Oracle, the major increase in Openai expenditures reduced the company to the shouting distance of the trillion -dollar club, which is currently containing eight technology peers. Oracle’s market value rose to approximately $ 930 billion on Wednesday before withdrawing for $ 830 billion to close the week.
Byron Deeter, Partners of Bessemer Venture Partners, said CNBC’s “Money Tovers” is still skeptical about Oracle’s expectations in AI. The company spent years to try to play capture in the cloud infrastructure where Amazon, Microsoft and Google watched.
Deeter said that Oracle was “level B hyperscaler” without significant positions in Oracle’s AI software or chips.
“Two days ago, we all thought Oracle wasn’t in AI anywhere,” Deeter said after the earnings report. “This mega is announcing money, people think they are the next big hyperscalers-and I do not buy this part.”
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