Oracle’s bold push into artificial intelligence has sent shockwaves through financial markets, wiping out more than $300 billion in its market capitalization since the company unveiled its massive partnership with OpenAI in September.
A report from the Financial Times notes that Oracle’s stock has fallen sharply following the announcement of its nearly $300 billion commitment to build out AI computing capacity for OpenAI.
The drop stands in stark contrast to the performance of major indices like the Nasdaq Composite, as well as tech giants such as Microsoft and the Dow Jones US Software Index, all of which have remained largely stable. To put the scale in perspective, the value Oracle shed is roughly equal to General Motors’ entire market worth, or double that of Kraft Heinz.
Between September 10, 2025, and November 18, Oracle’s valuation slid from almost $615 billion to about $315 billion, ranking it among the most dramatic downturns for a major tech company this year. The sell-off reflects growing skepticism about Oracle’s plan to bankroll enormous AI infrastructure on borrowed money—effectively positioning the firm as the publicly traded backer of OpenAI’s long-term ambitions in artificial general intelligence.
Growing unease around Oracle’s debt-heavy AI strategy
A significant portion of investor worry stems from Oracle’s strategy to expand its data center footprint through aggressive borrowing.
The company argues that its approach delivers quicker revenue returns than traditional capital spending models used by cloud giants like Amazon and Microsoft. However, critics point out that Oracle doesn’t have the same level of operating profit to comfortably absorb such substantial risk.
Oracle isn’t the only company rattled by OpenAI-related announcements. Broadcom and Amazon also saw share dips after unveiling AI partnerships, while Nvidia—despite substantial deals tied to OpenAI—has experienced almost no change in valuation.
Meanwhile, AMD’s stock jumped 24% in October after it secured warrants as part of a chip supply arrangement with OpenAI. The mixed reactions highlight just how unpredictable investor confidence has become when AI collaborations are involved.
