AsianFin -- Moody’s Ratings on Wednesday flagged potential risks tied to Oracle Corp’s recently signed $300 billion artificial intelligence cloud contracts, but refrained from making any ratings changes on the software giant.
Earlier this month, Oracle projected booked revenue at its cloud infrastructure unit to surpass $500 billion. The Wall Street Journal later reported that OpenAI had agreed to purchase $300 billion in computing power from Oracle over five years, in what would be one of the largest cloud deals ever.
Moody’s analysts referred to the massive contracts without naming specific customers, noting concentration risk and execution challenges. Despite the concerns, the agency left Oracle’s credit rating unchanged.