OpenAI is securing massive deals with companies worth hundreds of billions of dollars, with Microsoft and Oracle investing significantly to meet the capacity OpenAI requires. The company’s valuation has soared to $830 billion, seeking $100 billion in fresh capital to fuel its growth and large language model commitments. Both Microsoft and Oracle are major partners, but which stock is a better investment? OpenAI plans to spend over $500 billion with Microsoft and Oracle, along with additional commitments to other providers. The company generated $4.3 billion in revenue within the first six months of 2025, reaching a $20 billion annualized run rate. Despite the innovative financing strategies, the circular deals pose immense risk if OpenAI falters. The combined $550 billion commitments at Microsoft and Oracle are not guaranteed, highlighting potential stock risks. Microsoft and Oracle face substantial capital expenditures to build infrastructure for OpenAI, with Microsoft boasting stronger financial capabilities compared to Oracle. Microsoft’s high-margin software business supports AI data center expansion, while Oracle’s heavy spending and debt raise concerns. Despite Oracle’s riskier approach, its stock trades at a higher valuation than the S&P 500, making Microsoft a more appealing investment option. The Motley Fool Stock Advisor team suggests alternative investment opportunities, excluding Microsoft. The top 10 stocks identified by the team have the potential for significant returns, highlighting the importance of diversifying investments. With a proven track record of market-beating performance, the Stock Advisor community offers valuable insights for individual investors. Adam Levy holds positions in Microsoft, endorsed by The Motley Fool, which also recommends options related to Microsoft. The disclosure policy outlines the company’s positions and recommendations for investors to consider.

Read more at Yahoo Finance: Which OpenAI Partner Is a Better Buy for 2026?