Oracle and OpenAI Skipped the Financing Question Investors Keep Asking

Oracle and OpenAI pitched ChatGPT and Codex inside Oracle's software at Oracle AI World. Neither CEO mentioned how Oracle funds its $664 billion contract backlog.

Oracle co-CEO Clay Magouyrk and OpenAI CEO Sam Altman kept the focus on adoption. Shareholders, however, are weighing a backlog about half tied to OpenAI against negative free cash flow.

Is Oracle Selling AI Software or Renting AI Capacity?

At the keynote, Altman said GPT-6 drew OpenAI's strongest adoption of any new model. He cited coding, enterprise software, security, and science.

https://www.youtube.com/watch?v=SwoFsYmMvyA

Magouyrk said AI now writes more than 70% of Oracle's own software.

Meanwhile, OpenAI's case study counts 130,000 active ChatGPT users inside Oracle. It also counts more than 95,000 users of Codex, OpenAI's coding agent.

The same study says Oracle's talent acquisition team cut research time by 98%.

Oracle said Tuesday the additions are meant to make databases more actionable, CNBC reported. That goal could shift revenue toward software and away from rented capacity.

Why Did the Oracle and OpenAI Pitch Skip Oracle's Financing?

The on-stage conversation included no figures on capital spending, backlog, or financing.