'It looks like OpenAI is turning things around,' and that's seen as good news for Oracle, which has a lot riding on the ChatGPT creator's success

Shares of Oracle were up 3% on Tuesday.

Investors see Oracle's fate as heavily tied to OpenAI's, so it's good news that the latest ChatGPT model seems to be resonating with users and technology experts.

OpenAI launched ChatGPT-6 Astra last week. The reception online suggests the ChatGPT creator is retaking the crown in an ever-evolving race to create the best artificial-intelligence models. While earlier versions of ChatGPT put AI on the map for many users, Anthropic and Alphabet's (GOOG) (GOOGL) Google have won acclaim for their own models at times over the past few years.

"It looks like OpenAI is turning things around, and Astra is ahead of Fable on multiple benchmarks," Morningstar analyst Luke Yang told MarketWatch, referring to rival Anthropic's Fable model. "This boosts investors' confidence with Oracle's OpenAI backlog," or the dollar amount of commitments yet to be recognized as revenue.

Shares of Oracle (ORCL) were up 3% in morning trading on Tuesday.

Yang explained that since Astra has the "complete ability to operate a computer," new use cases and products could potentially "complete entire workflows that previous models aren't able to do."

While Astra is currently only available to a small group of users, if OpenAI can make a "breakthrough on the product front," that would drive up demand for computing power and push Oracle's stock price up even further, he said.

Investors have been concerned this year about Oracle's high capital expenditures - spending allocated toward things like data centers - as well as its profitability and ability to fund its noncancelable contract commitments.

OpenAI signed a contract with Oracle in September last year to buy $300 billion in computing power over five years, and analysts have argued that the company's growth prospects are largely linked to OpenAI's success.

It's shaping up to be an action-packed week for Oracle investors, with earnings due out on Thursday. Several anticipate strong cloud revenue growth, though the extent of Oracle's own spending remains a nagging issue.

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-Hannah Pedone