Oracle shares dropped 3.4% in morning trading following news that OpenAI missed recent user and revenue targets. Oracle has a five-year cloud arrangement with OpenAI worth roughly $300 billion.
Other AI-related companies also saw declines: CoreWeave, which signed an $11.9 billion contract with OpenAI, lost 2.8%, and Arm Holdings sank 6.3%. Oracle's five-year credit default swaps rose to a two-week high, signaling growing anxiety about debt risk.
The selloff reflects concern about competitiveness, customer growth, and the size of future cloud expenditure in the AI industry, though the OpenAI slowdown may not indicate decreased overall demand.
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