S&P cut Oracle to one notch above junk and named OpenAI as the reason, half of a $638 billion backlog on one unprofitable customer. The market shrugged; the credit desk did the arithmetic the buildout keeps skipping

S&P cut Oracle from BBB to BBB-, one notch above junk, and named OpenAI as the central credit risk: roughly half of Oracle's $638 billion in contracted future revenue traces to one unprofitable customer, against fiscal-2027 capex guided to $90–95 billion, a forecast $42 billion free-cash-flow deficit, $167 billion of debt, and a planned $20 billion equity raise. The stock shrugged; the desk takes the other side. Also: PJM's market monitor pins $23 billion of public electricity-price increases on data-center demand, 26 Meta workers sue over AI-scored layoffs, an RL agent trains models for $1,275, and, from our own desk, Burnban launches: a free local AI spend meter and budget circuit breaker, at burnban.dev.