Oracle rating downgraded by S&P, now stands one notch above junk; reason is Sam Altman

S&P Global Ratings lowered Oracle's credit rating to BBB- from BBB. The agency cited significant risks associated with Oracle's expanding AI infrastructure business. OpenAI's substantial reliance on Oracle's services presents a key credit risk for the company. Oracle faces potential financial strain from massive data center leases if OpenAI defaults. The rating agency warned of further downgrades if leverage exceeds 4.5x.

By TOI TECH DESK