Oracle basically signed up for something close to a $300 billion long term commitment to support OpenAI’s infrastructure. Most of that is data centers and compute, and the spending comes early while the payoff is way out in the future. That’s why the stock reaction looks rough. This isn’t about doubting AI. It’s about margins getting squeezed and the balance sheet taking the hit before revenue catches up. This kind of buildout is capital heavy, not classic high margin software. Oracle is also going head to head with hyperscalers that already run at massive scale. That raises execution risk. The whole thing only works if OpenAI demand stays strong for years, not quarters. If AI spending cools off at all, Oracle feels it fast because the capex isn’t flexible.