S&P Global sees OpenAI as a "key credit risk" for Oracle and cuts its credit rating

S&P Global downgraded Oracle's credit rating from "BBB" to "BBB-," citing OpenAI as a "key credit risk." Oracle's capital spending is projected to reach $95 billion by 2027, up from $60 billion, while OpenAI accounts for roughly half of Oracle's $638 billion in contractual obligations. S&P says Oracle lacks the internal workloads and reserves that AWS, Google, and Microsoft have to absorb excess capacity. SoftBank reportedly cut an OpenAI-backed loan from $10 billion to $6 billion.