S&P flags OpenAI exposure as credit risk for Oracle

S&P Global has downgraded Oracle's credit rating to BBB-, one notch above junk status, The Decoder reported. The agency reportedly sees OpenAI as a key credit risk because of the scale of Oracle's obligations tied to the AI company.

The report highlights how AI infrastructure deals are becoming material financial risks for major cloud and database companies. If one customer accounts for a large share of future obligations, investors and rating agencies will scrutinize whether that demand is durable.

For the AI market, the downgrade is another sign that compute buildouts are now large enough to affect balance sheets and credit quality.