Oracle and OpenAI Continue Collaboration with a Focus on Cloud Services

At the AI World conference, Oracle and OpenAI unveiled the integration of ChatGPT and Codex into Oracle's enterprise products. Oracle's Co-CEO Clay Magouyrk and OpenAI's leader Sam Altman focused on the technologies but did not disclose how Oracle will finance a $664 billion contract portfolio. Nearly half of the portfolio is tied to OpenAI amid Oracle's negative free cash flow.

Altman stated that GPT-6 has become the fastest-deployed model in OpenAI's history, highlighting demand in coding, enterprise software, cybersecurity, and scientific research. Magouyrk reported that over 70% of Oracle's programs are now written using AI.

OpenAI's report provides figures: over 130,000 Oracle employees work with ChatGPT, and Codex users exceed 95,000. The recruitment team reduced the time spent reviewing candidate resumes by 98%. On Tuesday, Oracle announced an increase in the practicality of databases, shifting focus to software sales.

No figures on capital expenditures and financing were mentioned on stage. Oracle's free cash flow for the first fiscal quarter is negative at $5 billion. According to CNBC, capital expenditures increased from $8.5 billion to $28.5 billion, and the company issued $20 billion in shares for the quarter. Magouyrk assured analysts that new AI contracts worth $30 billion were signed without external capital.

The backlog reached $664 billion; according to MarketWise, about half is linked to OpenAI. Oracle will start offering OCI clients OpenAI's Jalapeno chip for running pre-trained neural networks. High demand will convert reserves into revenue and mitigate the lack of details, but if demand falls, vulnerability will become critical. Algorithm developers sell growth metrics to investors, server suppliers report to creditors, and Oracle finds itself in the middle: the bet on software will pay off only if OpenAI continues to pay.