Oracle Corp. stock rose 1.4% in overnight trading late Sunday after the Wall Street Journal reported Nvidia was in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data center project. The reported guarantees from Nvidia would help the ChatGPT maker lease a 10-gigawatt project being developed by a unit of SoftBank in southern Ohio. OpenAI is one of Oracle's largest new customers, making the potential development significant for both companies as Oracle shares have faced pressure in recent months from investor scrutiny over mounting debt taken on to build data center capacity, much of it to support cloud contracts with OpenAI.
Nvidia Discusses $250 Billion Backstop for OpenAI Data Center Project
The Wall Street Journal reported Nvidia was in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data center project, citing people familiar with the matter. The guarantees from Nvidia would help the ChatGPT maker lease a 10-gigawatt project being developed by a unit of SoftBank in southern Ohio, the Journal reported.
The power for the project is controlled by the U.S. government and funded separately by Japan under a recent trade deal, with U.S. Commerce Secretary Howard Lutnick involved in deciding who will receive access to it, the report added. Nvidia's backing would allow the SoftBank unit to raise debt at more favorable terms than it could if OpenAI had no financial backer, since OpenAI has no investment-grade credit rating as an unprofitable private company, the report said.
OpenAI is among the companies that have shown most interest in the site, while Anthropic, Microsoft and Google have also spoken to Lutnick about it in recent weeks, the report added. Oracle stock was the most-discussed ticker among retail traders on Stocktwits following the report.
Oracle Stock Down 54% from June 1 High Amid Debt Concerns
Oracle stock is down 54% from its high on June 1 and 65% from its peak last September. The company has been piling on debt to fund new AI capacity, much of it tied to recently won business from OpenAI, sharply increasing Oracle's risk profile according to a Stocktwits report on July 17.
Oracle's stock slid for three sessions straight, losing about 10%, even after the company reported a major $7 billion software contract win from the U.S. Department of Defense last Thursday.
S&P Global Downgrades Oracle to BBB- on July 9
S&P Global Ratings downgraded Oracle to BBB- on July 9, just a notch above junk, citing its rapidly growing AI-related spending. Oracle's five-year credit default swaps (CDS) have more than quadrupled since mid-2025 to a record about 203 basis points, according to The Kobeissi Letter.
Ace investor and Nvidia short Michael Burry responded to the Nvidia-OpenAI report in an X post: "Around and around we go. Nvidia to guarantee $200 billion of ChatGPT's spending on $NVDA chips," referring to concerns of AI and cloud companies inking circular financing deals.
Stocktwits Sentiment Remains Bullish on Oracle
On Stocktwits, retail sentiment for ORCL was 'bullish,' unchanged from the previous day. One trader said: "$ORCL I am dreaming---If Jensen Huang or Elon Musk announce they would fully support Oracle's data center expansion and provide financing guarantees, the stock could be back to $200 within three trading days."
Another wrote: "$ORCL one thing the market seems to agree on: if OpenAI wins, Oracle wins."
FAQ
What caused Oracle stock to rise in overnight trading late Sunday?
Oracle Corp. stock rose 1.4% in overnight trading late Sunday after the Wall Street Journal reported Nvidia was in talks to provide a roughly $250 billion backstop for OpenAI as part of a massive data center project. OpenAI is one of Oracle's largest new customers.
When did S&P Global downgrade Oracle's credit rating?
S&P Global Ratings downgraded Oracle to BBB- on July 9, citing the company's rapidly growing AI-related spending. The rating is just a notch above junk status.
How much has Oracle stock declined from its recent highs?
Oracle stock is down 54% from its high on June 1 and 65% from its peak last September. The stock slid for three sessions straight, losing about 10%, even after reporting a $7 billion software contract win from the U.S. Department of Defense last Thursday.
