OpenAI is securing massive deals with companies like Microsoft and Oracle, totaling hundreds of billions of dollars. The company, valued at $830 billion, is seeking $100 billion in fresh capital for its large language models. Microsoft has a 27% equity stake and a $250 billion commitment from OpenAI for its Azure platform. Oracle has also secured a $300 billion commitment from OpenAI. Microsoft is a safer investment option due to its diversified customer base and strong financial operations. OpenAI plans to spend over half a trillion dollars with Microsoft and Oracle and generated $4.3 billion in revenue in the first six months of 2025. OpenAI’s circular financing deals raise risks, but if successful, they could benefit both OpenAI and its partners. Microsoft and Oracle are responsible for building the necessary infrastructure for OpenAI, with Microsoft generating $25 billion in free cash flow and Oracle tripling its capex to $12 billion last quarter. Microsoft’s financial stability makes it a more attractive investment compared to Oracle, which faces increased risk due to its heavy spending and customer concentration on OpenAI. Consider alternative investment options recommended by the Motley Fool Stock Advisor team. The team identified the 10 best stocks to buy now, excluding Microsoft, to potentially yield significant returns. Don’t miss out on these opportunities to grow your investment portfolio.

Read more at Nasdaq: Microsoft vs. Oracle: Which OpenAI Partner Is a Better Buy for 2026?