Oracle Faces Investor Concern Over OpenAI Debt Risks

Oracle Corporation reported a record remaining performance obligation of $638 billion in its fiscal 2026 fourth quarter, driven by rapid growth in its AI cloud infrastructure business. However, investors have raised concerns regarding the company's financial stability because approximately $300 billion of that backlog is attributed to a single customer, OpenAI.

Analysts question whether OpenAI can fulfill these massive commitments given the startup's current revenue levels and ongoing losses. This concentration of risk is compounded by Oracle's existing $122 billion in long-term debt. To further expand its data center capacity, the company plans to raise an additional $40 billion.

Oracle is expected to release its fiscal 2027 first-quarter financial results on September 8. These results are anticipated to provide more clarity on the composition of the order backlog and the company's strategy for managing its debt.