An analyst warns Oracle may struggle to monetize $638 billion in AI data center commitments amid customer defections.
Wall Street strategist Matt Maley identifies Oracle as a likely casualty in the AI infrastructure shakeout, predicting only one or two major players will emerge victorious. Oracle’s AI bet faces scrutiny after the company admitted potential monetization challenges, despite its $638 billion in remaining performance obligations (RPO).
Oracle Cloud Infrastructure (OCI) revenue surged 93% year over year, but concerns persist over a key customer, widely believed to be OpenAI, potentially reducing lease commitments. Maley highlighted Oracle’s own doubts about recouping its massive AI spending, contrasting with expectations from six months ago.
The analyst’s bearish stance contrasts with Oracle’s rapid cloud growth, raising questions about long-term profitability in the AI race.