Oracle's $300B AI bets raise red flags for Moody's

Business Sep 18, 2025

Moody's Ratings just put a spotlight on Oracle's huge $300 billion AI contracts, including its reported deal with OpenAI.
While the deals show off Oracle's growing role in AI, Moody's says there's a real risk because Oracle is depending so much on just a handful of AI companies.

Oracle's debt could hit leverage ratio of 4x

Moody's also warns that Oracle could feel some financial strain, with its debt rising faster than its earnings and possibly hitting a leverage ratio of 4x.
The company's free cash flow is expected to stay negative for a while before things improve.
Still, Moody's hasn't changed Oracle's credit rating (it stays at Baa2), and meanwhile, Oracle expects its cloud business—boosted by these AI deals—to eventually top $500 billion in revenue.