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Oracle Corporation's Stock Takes a Nose dive amid AI Hype

Oracle

Business Honor
08 December, 2025

Oracle Corporation's stock plummets over 45% raising concerns about reliance on OpenAI amid fierce AI competition.

Oracle Corporation (ORCL) stock has suffered a sharp decline of over 45%, dropping from its peak in early September to its current price only a few months later. It is clear that the market is reluctant to accept the ambitious way in which Oracle plans to build out its infrastructure around Artificial Intelligence (AI), as previously stated by Oracle's management during a recent investor day. Due to the rise in investor interest, Oracle's story became linked to OpenAI, which is currently valued at $500 billion, due to the enormous profile and partnerships that OpenAI has been able to create in cooperation with large companies manufacturing AI semiconductor chips.

Oracle’s steep drop in share price is indicative of the underlying risk associated with the current trend of businesses gravitating toward artificial intelligence technology or what analysts are calling a "gold rush." In addition to this, Oracle has emerged as a "proxy" investment opportunity for individuals wishing to invest in OpenAI, given the strategic partnership that exists between the two organizations. The recent announcement of AI products being launched by other leading companies in the AI sector presents additional competition for Oracle and OpenAI.

Meta Platforms were reported to be evaluating whether to purchase Google's TPUv7 Ironwoods-based processors for their new AI initiatives, which is a clear indication of how rapidly evolving the AI industry is and the potential disruption new entrants may create. In addition, the "code red" alert issued by Google in late 2022 seems to have had a significant positive impact on the way the company now views itself as a top-tier vendor in the AI industry, which in turn has allowed it to recapture its previous standing and competitiveness in this space.