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Why OpenAI’s $300 billion deal with Oracle has set the ‘AI bubble’ alarm bells ringing

Last week, Oracle surprised Wall Street with a massive 300billiondealwithOpenAI,afiveyeardealthathelpedsendOraclesstocksoaringandbroughtsimmeringfearsofanAIbubblebacktothesurface.Oracleshockedanalystsinitslatestquarterlyearningscallwithrevenueprojectionsthatcited300 billion deal with OpenAI, a five-year deal that helped send Oracle’s stock soaring—and brought simmering fears of an ‘AI bubble’ back to the surface. Oracle shocked analysts in its latest quarterly earnings call with revenue projections that cited 455 billion in contracts, up 359% from a year earlier. The optimistic forward-looking numbers caused the company’s stock to jump 36% on Wednesday, the company’s biggest one-day increase ever, and brief ...