"Funding rounds of that size are no longer unusual. The surge in AI investment and the growing need for cloud capacity and data centers have pushed many companies to seek massive financing. But Oracle's recent run has been unusually volatile. Just a few months ago, its shares jumped 40% in a single day, briefly making CEO Larry Ellison the world's richest person ( ahead of Elon Musk)."
"That spike came after Oracle reported a 359% increase in its remaining performance obligation (RPO, which are expected revenues based on customer commitments). That was driven by a $300 billion contract with OpenAI. Things haven't gone so well since then, though. The stock saw a big tumble after the company reported earnings in December that fell short of analyst's revenue expectations, the stock saw a big tumble."
Oracle announced plans to raise about $45–$50 billion to expand cloud capacity as demand rises from customers including Nvidia, Meta, OpenAI, TikTok and xAI. Shares fell 2% after the fundraising announcement and have been unusually volatile, following a prior single-day 40% jump tied to a large RPO increase driven by a $300 billion OpenAI commitment. A December earnings miss triggered a significant stock tumble, leaving shares more than 30% below mid-September levels. Investors express concern about heavy debt, aggressive AI buildout plans and potential overreliance on OpenAI, prompting caution despite ongoing infrastructure needs.
Read at Fast Company
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