Oracle's credit rating was cut to BBB- by S&P due to AI infrastructure spending outpacing revenue, and it's fighting Wisconsin regulators over data center financial requirements. The downgrade puts Oracle just above junk status.
businessTuesday, July 21, 2026
Oracle credit cut; Paramount merger blocked
Regulatory and legal pressures are reshaping big business today. Oracle's credit rating was downgraded amid a data center legal battle, and a judge blocked the Paramount-Warner Bros. merger. Meanwhile, Anthropic's $1.5B copyright settlement was approved, signaling a new era for AI liability.
Legal and regulatory blows
Two major deals hit roadblocks, and a landmark AI settlement was finalized.
A federal judge temporarily blocked the $110 billion Paramount-Warner Bros. merger after 12 states sued, arguing it would create a media monopoly. The ruling is a major setback for both companies.
A U.S. judge approved Anthropic's $1.5 billion settlement of a class action copyright lawsuit over AI training data. It's one of the largest AI copyright settlements and sets a precedent for how AI companies handle intellectual property.
Markets and earnings
Alphabet's new AI chip lifted shares, while Netflix's drop and Oracle's downgrade show the market's mixed mood.
Alphabet shares rose 2.8% after news of a new internal AI chip called 'Frozen v2,' which Google engineers say could be up to 10 times more energy-efficient. The gain added billions to the net worth of co-founders Page and Brin.
Netflix reported solid Q2 results with 13% revenue growth, but the stock dropped 7% to near its 52-week low. The stock has lost over 40% in the past year, trading at 22 times profits, raising questions about market sentiment vs. fundamentals.
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