Microsoft vs. Oracle: Which OpenAI Partner Is a Better Buy for 2026?

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than Microsoft ›In just over three years, OpenAI has gone from a relatively unknown to a tech industry giant worth as much as $830 billion, based on its current fund-raising round. It's currently seeking $100 billion in fresh capital, and it's going to need it. The developer of large language models has made huge commitments to several major partners for cloud computing resources.Two of OpenAI's biggest partners are Microsoft (NASDAQ: MSFT) and Oracle (NYSE: ORCL).Microsoft has a long history with OpenAI, having invested in the company as early as 2019, well ahead of the release of ChatGPT. It now owns a 27% equity stake in the business and has contracted $250 billion in commitments from OpenAI for its cloud computing platform Azure.But OpenAI, hungry for computational resources, has signed several deals with Microsoft's competition, including Oracle. The two announced a huge $300 billion commitment from OpenAI spanning five years for Oracle's cloud infrastructure business.There's no doubt that both Microsoft and Oracle have a lot riding on the success of OpenAI. But which stock should investors buy right now?Image source: Getty Images.OpenAI plans to spend over half a trillion dollars with Microsoft and Oracle alone. It has another $800 billion or so in commitments with various other cloud and chip providers as well.Meanwhile, the company generated revenue of $4.3 billion through the first six months of 2025. CEO Sam Altman says it reached a $20 billion annualized run rate last quarter.It doesn't take advanced artificial intelligence to determine that a company generating around $20 billion per year will need to cover hundreds of billions per year in spending with some outside funding. In many cases, OpenAI is able to negotiate a form of vendor financing using things like equity and stock warrants.Many have criticized the circular deals that help OpenAI pay for the infrastructure it needs, but if it's ultimately successful in growing the business, it could work out well for both OpenAI and its partners. On the other hand, it introduces immense risk into the equation. If OpenAI stumbles, it could bring down the entire industry.The $550 billion in combined commitments at Microsoft and Oracle are not guaranteed. And that's an important caveat to consider when evaluating both companies' stocks.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.07 (-0.17%)Nasdaq23,515.39 -14.61 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX18.84 +3.00 (+18.94%)Gold4,673.50 +78.10 (+1.70%)Trending tickersMU Micron Technology, Inc. 362.75 +26.12 (+7.76%)IBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)META Meta Platforms, Inc. 620.25 -0.55 (-0.09%)CRML Critical Metals Corp. 17.65 +0.40 (+2.32%)NVDA NVIDIA Corporation 186.11 -1.01 (-0.54%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.23 +2.64 (+15.92%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +9.00 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.97 (-9.65%)Most activeWMT Walmart Inc. 119.70 +0.50 (+0.42%)NVDA NVIDIA Corporation 186.11 -1.01 (-0.54%)IBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Inc. 12.14 -0.71 (-5.50%)INTC Intel Corporation 46.99 -1.28 (-2.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events