Moody’s Flags Counterparty Risk in Oracle’s $300B AI Deal with OpenAI

Moody’s Ratings has raised concerns about Oracle’s significant counterparty risk tied to its $300 billion AI infrastructure deal with OpenAI. The credit agency maintained Oracle’s Baa2 rating but highlighted reliance on a concentrated customer base as OpenAI commits to purchasing 4.5 gigawatts of computing power from Oracle’s expanding data center network.

Oracle’s Q1 earnings revealed a 359% surge in AI cloud infrastructure bookings, with Remaining Performance Obligations hitting $455 billion. CEO Safra Catz anticipates this figure could surpass half a trillion dollars as multibillion-dollar deals proliferate. The warning follows Moody’s July downgrade of Oracle’s outlook to Negative, citing overexposure to few large clients in its high-growth AI segment.