Investors sue Oracle, say it hid how shaky the OpenAI deal was
The strain inside the AI boom’s biggest infrastructure bet has reached a courtroom. Oracle’s own investors are suing, saying the company hid how shaky its $300bn deal with OpenAI really was.
A Michigan public pension fund, the City of Sterling Heights Police & Fire Retirement System, filed the class action on Wednesday in a Tennessee state court, as Courthouse News reported. It targets Oracle’s $25bn note sale from February, and names co-founder Larry Ellison, former chief executive Safra Catz, the current co-CEOs, and a long row of underwriting banks.
The missing disclosure
The claim runs narrow but sharp. Before selling the notes, Oracle told investors its backlog of booked-but-unfulfilled orders had exploded. That figure, known as remaining performance obligations, had jumped from about $97bn to more than $523bn in a year. Almost all of the growth, the suit says, traced to a single customer: OpenAI.
What Oracle did not disclose,...
Copyright of this story solely belongs to thenextweb.com. To see the full text click HERE
