Oracle became a 'poster child' for AI bubble fears (finance.yahoo.com)

Oracle's stock fluctuations in 2025 have become a key indicator of the ongoing debate about the viability of AI investments. After a significant boost from a $500 billion joint venture with OpenAI and SoftBank for US AI infrastructure, Oracle's shares peaked in September, elevating Larry Ellison to the title of the world's wealthiest person. However, the enthusiasm has turned into skepticism, as investors worry about the company's rising debt, which reached $124 billion, and increasing risk indicators, such as the demand for credit default swaps for tech firms. The concerns center around Oracle's ambitious commitments for AI infrastructure amid uncertain demand and potential cash flow issues. With approximately $300 billion tied to OpenAI and significant capital outlays planned for data centers, analysts argue that Oracle faces a precarious balance in its strategy. Delays in infrastructure projects and OpenAI's growing cost could complicate returns on investment. The recent CEO transition adds to the uncertainty, making Oracle a focal point in discussions about the sustainability of the AI boom and the inherent risks of leveraging significant debt for ambitious technology growth.