S&P Global sees OpenAI as a "key credit risk" for Oracle and cuts its credit rating
S&P Global downgraded Oracle to BBB- due to heavy reliance on OpenAI, which accounts for nearly half of its $638 billion in contractual obligations.
Oracle's credit rating was cut to one notch above junk status as capital expenditure projections for 2027 surged to $95 billion. Analysts cite the concentration risk of OpenAI, noting that if the AI firm terminates its contract, Oracle would face significant underutilized data center capacity.