Oracle Stock Rises on OpenAI Funding News and Cloud Growth

Oracle shares surged 6.7% as investor enthusiasm reignited over its cloud computing prospects. The rally follows Nvidia's $100 billion commitment to fund OpenAI's next-generation AI data centers—a deal that directly benefits Oracle's cloud infrastructure.

Earlier this month, Oracle disclosed a 359% spike in cloud-related performance obligations, now totaling $455 billion. Nearly two-thirds of that backlog stems from a five-year agreement with OpenAI. Today's funding news alleviates concerns about OpenAI's ability to meet its contractual commitments.

While Oracle announced CEO succession plans and advanced talks to acquire a stake in TikTok's US operations, the market focused squarely on the AI infrastructure boom. The company has positioned itself as a critical enabler of large-scale AI deployments, with its cloud division now driving valuation multiples.