Moody’s Ratings raised concerns about risks in Oracle Corp’s $300 billion in AI contracts, but didn’t take action. Oracle expects over $500 billion in revenue from its Cloud Infrastructure business. OpenAI signed a $300 billion deal with Oracle for cloud computing power over five years, driving a majority of the new revenue. Moody’s highlighted risks in relying on a few large AI companies for funding. They noted Oracle’s debt will increase faster than EBITDA, leading to high leverage. Oracle’s Baa2 issuer rating is at the lower end of investment-grade credit ratings.

Read more at Yahoo Finance: Moody’s flags risk in Oracle’s $300 billion of recently signed AI contracts