Oracle earnings projections raise red flags – possible house of cards!
Oracle’s recent announcement of its Remaining Performance Obligations (RPO) of $455B, is overwhelming reliant on one deal – a contract with OpenAI to purchase $300B in computing power over roughly five years. This has created a huge “Counterparty Risk” for Oracle, “… where there is a high reliance on revenue from a single counterparty", according to Moody Ratings.
Given that OpenAI’s projected revenue for fiscal 2025 is ~ $13B (2024 revenue was $4B), any delay in payments, restructures or shifts in strategy by OpenAI could massively impact Oracle’s revenues negatively. https://cio.economictimes.indiatimes.com/amp/news/artificial-intelligence/moodys-flags-risk-in-oracles-300-billion-of-recently-signed-ai-contracts/123987652 #Oracle #OpenAI #AI #Business #Risk #Cloud #OCI #OracleCloudInfrastructure #CloudComputing


