S&P Global has downgraded Oracle’s credit rating to BBB-, placing it just one notch above junk status, according to The Decoder. This move reflects growing credit risk tied to Oracle’s significant exposure to OpenAI.
The Decoder reports that OpenAI represents roughly half of Oracle’s $638 billion in contractual obligations. Should OpenAI decide to terminate its relationship, Oracle would face the challenge of managing a large amount of unused data center capacity, heightening financial risks.
For Japanese investors and market watchers, this downgrade highlights the increasing interconnectedness of tech partnerships and credit stability, emphasizing the need to monitor AI-linked exposures within global equity and FX markets.