S&P just downgraded Oracle's long-term credit rating from BBB to BBB-, just one step away from 'junk bonds.' Out of the $638 billion cloud contract backlog Oracle has been bragging about, a whopping half of it comes from OpenAI, which hasn’t made a single penny yet. What’s even more fatal is that Oracle signed a 19-year data center lease to build facilities, but only has a 5-year compute contract with OpenAI in hand. Basically, they’re using 20 years of fixed liabilities to bet on the future.