Openai CEO Sam Altman took to Allen & Co, held on July 8, 2025 in Sun Valley, Idaho. Upon arriving at the lodge at the Sun Valley Conference, you will be speaking to members of the media.
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OracleThis week’s historic inventory surge marked Openai, the latest chapter in the story of a single private company that has dominated the tech landscape for nearly three years.
In Oracle’s Punk Revenue Report, Openai was a key catalyst for the massive amounts of money that artificial intelligence startups expect to spend on cloud computing technology in the coming years.
It is becoming a familiar theme.
A week ago, Broadcom The stock has popped almost 10% after chip makers and software vendors said they fake $10 billion deals to build custom processors for customers that analysts said were Openai.
Among the Tech Mega Cups Microsoft It has the closest link to Openai, investing over $13 billion in the company and serving as a major cloud partner for six years. nvidia’s Marching to become the world’s most valuable company is closely tied to Openai as Graphics Processing Units (GPUs) are at the heart of large-scale language model development and are essential for running large AI workloads.
Only four companies, Oracle, Broadcom, Microsoft and Nvidia, have swelled their total market capitalization over $4.5 trillion since Openai was released with the launch of ChatGPT in late 2022.
Openai’s ingenious impact is of course of interest to some market experts. It remains a cash burning startup controlled by nonprofit parents.
The company’s $500 billion valuation is supported by a small number of investors betting Openai wins in the face of competition such as: Meta and Google And so are other high value newcomers like humanity and all of the Chinese players.
“I love ChatGpt, but Openai still has no limited profits in its ability to raise capital,” said Gil Luria, an analyst at DA Davidson, in an interview with CNBC.
Luria, who recommends holding Oracle shares, delved into the number of companies as it was stocked during the 36% jump on Wednesday, its biggest profit since 1992.
In its quarterly revenue report late Tuesday, Oracle said it had signed four multi-billion dollar contracts with three different customers over the period. One of them was in Openai, but previously said he agreed to develop a 4.5 gigawatt US data center capacity with Oracle.
Investors knew Oracle had signed a $30 billion cloud deal that it had not planned to start in two years, based on its June submission with the SEC. CNBC reviewed the Wall Street Journal report from Wednesday, confirming that Openai has agreed to spend $300 billion in computing power over nearly five years starting in 2027.
In the two days after the historic pop, Oracle’s stock fell more than 6% on Thursday and another more than 5% on Friday.
New revelation about Openai’s massive cloud commitment provided a clearer sense of Oracle’s growing backlog. Oracle said performance obligations, a measure of contract revenue that is not yet recognized, have skyrocketed from 359% to $455 billion from the previous year.
Luria said that Oracle’s backlog concentration with one customer “reduces enthusiasm significantly” especially when “more than 90% come from Openai.”
Oracle did not respond to requests for comment.
Altman’s Open Wallet
Openai has made a big commitment to several other cloud providers. coreweave and GooglePresident Donald Trump, who is reportedly planning to invest $19 billion in Stargate, announced in January that he would step up his AI infrastructure investment in Stargate.
Luria said, “Sam Altman has spoken out to sign a very large check without having to worry about whether they can be cashed out.”
Openai declined to comment.
Openai will lose money in the near future, but the company hopes it will continue to grow at a rapid pace. After CNBC achieved recurring revenues of $10 billion a year in June, Openai is moving at that number as it reaches $125 billion by 2029.
And on Thursday, Openai took a step closer to formalizing its transition to for-profit organizations. The company said its nonprofit parents will continue to oversee the business and own more than $100 billion in shares as commercial organizations become public interest corporations.
Openai needs to rebuild by the end of the year to secure the entire $40 billion from its latest funding round.
For Oracle, a massive increase in Openai spending has resulted in the company landing at the Trillion Dollar Club’s Crying Distance, which currently includes eight high-tech peers. Oracle’s market capitalization rose to around $900 billion on Wednesday before retreating to $830 billion to close the week.
Byron Deeter, a partner at Bessemer Venture Partners, told CNBC’s “Money Movers” that he is still skeptical of the outlook for Oracle for AI. The company has spent years trying to play catch-ups on cloud infrastructure that overtakes Amazon, Microsoft and Google.
Deeter said Oracle will remain “B-level hyperschool” with no meaningful positioning in AI software or chips.
“Two days ago, we all thought Oracle was essentially nowhere in AI,” Deeter said following his earnings report. “They’re going to announce this megadeal. People think they’re the next great hyperschool, and I won’t buy that part.”
Watch: Byron Deeter for Adobe and Oracle
