Oracle-OpenAI deal concentrates risk as contract hinges on Microsoft talks and Softbank-led raise

Group 1 - Oracle has signed a significant $300 billion deal with OpenAI for cloud computing power, marking one of the largest contracts in this sector [1] - This 5-year agreement, starting in 2027, contributes to Oracle's reported future contract revenue backlog of $455 billion [2] - The deal indicates a return on investment for Oracle's Stargate data center project and justifies an increase in capital expenditures to $35 billion for the year [2] Group 2 - OpenAI's annual revenue is $10 billion, necessitating $60 billion to fulfill the contract with Oracle, indicating a substantial financial commitment from both parties [3] - Oracle may need to incur debt to acquire the necessary chips to meet the demands of the contract [3] - The arrangement reflects a high level of risk for both companies, as they are heavily reliant on this single contract to drive future growth [4]