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Apple’s lawsuit against OpenAI raises concerns for Oracle and Microsoft
Oracle’s credit rating was cut to BBB- and OpenAI accounts for roughly half of its remaining performance obligations, highlighting credit and earnings risks for investors.
Apple has sued OpenAI, alleging the AI company stole Apple trade secrets and instructed staff hired from Apple on how to do so, according to Yahoo Finance.
The suit extends beyond the two defendants, with Yahoo Finance citing potential spillover effects for Oracle and Microsoft given both companies’ significant ties to OpenAI.
The report points to market and credit stress tied to those relationships, noting Oracle has seen its credit default swap pricing rise after a $300 billion deal with OpenAI last year.
Yahoo Finance also says S&P Global Ratings downgraded Oracle’s debt to a BBB- rating, the lowest tier of investment grade, and that OpenAI is estimated to make up roughly half of Oracle’s $638 billion remaining performance obligations, while Microsoft disclosed in January that 45% of its commercial RPO comes from OpenAI.