Full-service investment firm D.A. Davidson stated that OpenAI is back on track after correcting several strategic missteps. The firm believes this shift could benefit key players in its ecosystem, such as Oracle.

The investment firm sees a brighter outlook for the artificial intelligence company and upgraded its rating in a report issued on Monday.

D.A. Davidson analyst Gil Luria wrote that since September, OpenAI has "corrected several errors" and refocused on ChatGPT and its core frontier models.

"This includes moving toward launching an advertising business, which is critical for increasing monetization capabilities and reducing cash burn. Management also appears to recognize the need to align with Nvidia, Microsoft, and Amazon, rather than attempting to compete with them," Luria wrote.