- Investors are wary of permitting and construction delays as opposition mounts in New Mexico, pressuring Oracle's $18bn data centre debt.
- Oracle stock jumped 6% intraday after reports OpenAI is in talks to raise capital at a $1.2 trillion valuation, a read-through that de-risks Oracle's AI infrastructure build-out.
- Oracle signed a $300 billion deal to provide computing power for OpenAI last September; the deal made Oracle a leading hyperscaler but raised concerns about overstretched AI infrastructure spending for a customer with funding risk.
- Credit default swap spreads on Oracle debt are higher, reflecting bond-market concern about the OpenAI-linked buildout.
Quotes
“Investors grow wary of permitting and construction delays as opposition mounts in New Mexico”
“Oracle signed a $300 billion deal to provide computing power for OpenAI last September.”
“If the speculation is credible, then it will be excellent news for Oracle and help de-risk its AI infrastructure build-out plans.”