Oracle’s bold bet on artificial intelligence has rattled investors as the company has shedded more than $300 billion in market value since a landmark partnership with OpenAI in September. As reported by Financial Times, Oracle stock witnessed a steep drop since September, when it unveiled a $300 billion agreement with OpenAI. This sharp decline in the market value of Oracle has started a talk of ‘Curse of ChatGPT’ as Wall Street is raising questions about whether the deal will deliver returns or saddle Oracle with outsized risks. In the same period, the benchmarks such as Nasdaq Composite, Microsoft, and the Dow Jones US Software Index remained relatively stable, underscoring Oracle’s unique slide.
The data shows Oracle’s market capitalization dropping from around $615 billion on September 10, 2025 to about $315 billion by November 18, 2025 — a staggering $300 billion loss in just over two months. Dangers Of AI: Is ChatGPT Quietly Harming Your Mental Health? | Global Pulse At an analyst day in Las Vegas last month, Oracle projected cloud computing revenue of $166 billion by 2030. Yet, credit-default swaps tied to Oracle debt have seen increased demand following $18 billion in bond sales, signalling investor caution. Oracle is not alone in facing turbulence after AI tie-ups: * Broadcom and Amazon shares also dipped following OpenAI-related announcements. * Nvidia, despite its own investment agreement, has seen little change in valuation. * By contrast, AMD’s stock surged 24% in October after securing warrants in a chip deal with OpenAI.
Analysts suggest that the loss is equivalent to the market value of General Motors or twice that of Kraft Heinz. Oracle’s market cap has slid since its OpenAI partnership announcement, fueling talk of the “Curse of OpenAI. This steep decline underscores investor unease over Oracle’s debt-fueled bet on AI infrastructure for OpenAI, effectively making Oracle a public market proxy for OpenAI’s ambitions. The unease stems from Oracle’s decision to finance massive data farm investments with debt to support OpenAI’s compute needs. it lacks the operating profit cushion enjoyed by hyperscalers like Microsoft or Amazon While Oracle promises lower upfront costs and faster income generation compared to rivals. Oracle has effectively become OpenAI’s public market proxy, with its fortunes tied to the AI company’s race to achieve artificial general intelligence (AGI). The Financial Times noted that while CDS premiums remain modest, the trend reflects growing skepticism about Oracle’s aggressive AI gamble. This divergence highlights the fickle nature of investor sentiment toward AI partnerships.