February 3, 2026
Oracle opened higher on the day after announcing plans to raise $50 billion for AI infrastructure, according to a financial report. It closed lower after reminding investors who their infrastructure was for.
The company announced Sunday night that it plans to raise up to $50 billion in debt and equity during the 2026 calendar year to fund additional data center capacity for cloud customers. Initial market reaction was positive, with Oracle shares up about 2% in early trading. The market seems confident that Oracle does indeed have a plan to deal with its roughly $100 billion debt burden.
As Oracle’s price fluctuates slightly at $168, the company’s social media team provides an explanation. “Nvidia’s agreement with OpenAI has no impact on our financial relationship with OpenAI,” the company wrote in a post on X. “We continue to have strong confidence in OpenAI’s ability to raise capital and deliver on its commitments.”
The market reaction was swift and brutal. Rather than projecting the intended confidence, the post served as a negative signal to investors already worried about Oracle’s debt. “This is literally the language of bank management,” venture capitalist Alex Količić wrote in X. Within minutes of the post, Oracle’s stock price began to decline, dropping 2.79% to close at $160.06.
To be fair, Oracle’s five-year credit default swaps also fell by 17%, a sign that investors are confident in the company’s ability to manage its debt and avoid a credit downgrade. The question is why stock prices have also fallen.
Both Microsoft and Nvidia are seeing a downtrend in their stock prices related to their exposure to OpenAI, as investors are sending a message that they are bullish on AI, but not necessarily the ChatGPT maker.
Nvidia is expected to make a major equity investment in OpenAI, potentially pledging up to $100 billion as part of OpenAI’s next funding round. But reports over the weekend suggested the deal had stalled and was in fact non-binding, with CEO Jensen Huang lending credence to the report by stressing that the funding was “by no means a promise” and only a letter of understanding had been reached. All Nvidia investments in OpenAI will be decided in stages, he said.
Huang reiterated that NVIDIA is “absolutely involved” in OpenAI’s funding round, saying it could be NVIDIA’s “biggest investment” but not in the $100 billion range. Microsoft saw $360 billion worth of stock wiped out last week as investors gawked at the company’s AI spending levels. Despite significantly beating expectations, Microsoft appears to have been punished for the drop after it was revealed that 45% of its $625 billion commercial order backlog (about $250 billion) is related to OpenAI. Meanwhile, revenue growth from Microsoft’s AI cloud computing was stalling.
Source: IndexBox Market Intelligence Platform
