Oracle Plunges 50% as It Plans $300B OpenAI Build-Out and $300M DTE Deal
Oracle shares have slumped 50% from a September high after announcing a $300 billion OpenAI contract requiring significant cloud build-out before a 2027 start and trade at 22x forward earnings. The company also secured a 1.4 gigawatt DTE Energy data-center deal expected to generate $300 million in annual benefits.
1. OpenAI Contract and Valuation Pressure
In September Oracle secured a $300 billion infrastructure contract with OpenAI slated to start in 2027. Building out the necessary cloud and data-center capacity has driven the stock down 50% from its peak and resulted in a 22x forward earnings valuation against a $523 billion order backlog.
2. DTE Energy Data-Center Agreement
Oracle finalized a 1.4 gigawatt data-center deal with DTE Energy in Q4 2025, expected to deliver approximately $300 million in annual customer cost savings and bolster Oracle’s cloud revenue.
3. AI Panic Triggers Share Volatility
On February 17, Oracle shares fell over 3.9% as investor concerns over agentic AI tools disrupting SaaS models sparked a broader sell-off, highlighting the company’s 26 moves above 5% in share price over the last year.