‘ChatGPT Curse?’ Oracle Wipes Out $300 Billion in Market Value After Announcing OpenAI Partnership

Mumbai, Nov 19 : Oracle’s sweeping bet on artificial intelligence has triggered a deep market slide, with the company losing more than $300 billion in market value since announcing its landmark partnership with OpenAI in September. The dramatic erosion has fueled discussions on Wall Street around the so-called “Curse of ChatGPT,” as investors question whether the high-stakes deal will generate returns or saddle Oracle with long-term risks.

According to the Financial Times, Oracle’s shares have plunged sharply since the announcement of its roughly $300 billion AI infrastructure deal with OpenAI. In contrast, major benchmarks such as the Nasdaq Composite, Microsoft, and the Dow Jones US Software Index have remained relatively steady highlighting Oracle’s isolated decline. Analysts note that the valuation loss is equivalent to the entire market cap of General Motors, or twice that of Kraft Heinz.

Market Cap Collapse Fuels ‘Curse of ChatGPT’ Talk

Oracle’s market value tumbled from nearly $615 billion on September 10, 2025, to around $315 billion by November 18, marking one of the steepest declines among major tech firms this year. The plunge underscores rising unease over Oracle’s plan to finance vast AI infrastructure for OpenAI with debt, effectively making the company the public-market face of OpenAI’s AGI ambitions.

Investor Concerns Rise Over AI Infrastructure Debt

Much of the investor anxiety centers around Oracle’s decision to fund its data center expansion with heavy borrowing. While the company claims its model offers faster revenue generation and lower upfront costs, unlike hyperscalers such as Microsoft and Amazon, Oracle lacks the large operating profit cushion to absorb long-term risk.

Credit-default swaps tied to Oracle debt have also seen increased demand after an $18 billion bond issuance, signaling heightened caution. Though CDS premiums remain relatively modest, analysts note the trend reflects skepticism about Oracle’s aggressive AI-driven strategy.

AI Market Reactions Remain Mixed

Oracle isn’t alone in feeling turbulence after announcing ties with OpenAI.

Broadcom and Amazon shares dipped following their AI-related announcements.

Nvidia, despite major OpenAI-linked agreements, has seen minimal valuation impact.

AMD surged 24% in October after securing warrants in a chip-supply deal with OpenAI.

This divergence underscores how unpredictable investor sentiment has become around high-profile AI partnerships.