Oracle (NYSE:ORCL) stock gained on Monday after the company introduced new role-based artificial intelligence agents to help customer experience companies automate operations.
The new AI agents enable organizations to scale personalized engagement while optimizing performance and productivity.
Also Read: Oracle Stock Slips As Company Taps Debt Market For AI Infrastructure Spending: Report
Running on Oracle Cloud Infrastructure (OCI), the AI agents are prebuilt and available at no additional cost to Oracle Fusion Applications customers. Embedded within business workflows, they allow users to act faster and make data-driven decisions.
Oracle stock gained 72% year-to-date backed by growth in cloud services and AI computing. The uptrend comes as the company rapidly expands its cloud infrastructure. Oracle is now in position to challenge established cloud providers like Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) Google.
However, in September, Moody's Ratings has warned of potential risks tied to Oracle’s AI contracts.
Moody's said Oracle's $300 billion in AI agreements, including its deal with OpenAI, expose the company to concentration risk, as its business increasingly depends on a few large AI customers.
Moody's cautions that rising debt could outpace EBITDA, leading to negative free cash flow for several years. While analysts see potential in Oracle's AI infrastructure business, they flagged counterparty risk—particularly around OpenAI's financial position—as a key concern.
OpenAI, reportedly struggling to meet its financial obligations under the deal, has raised doubts about the contract's stability. Short-seller Jim Chanos questioned the timing and quality of Oracle's backlog, drawing parallels to past accounting controversies.
Price Action: Oracle stock was trading higher by 2.59% to $293.47 premarket at last check Monday.
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