AI spending spree hits $600b as Oracle fires 21,000 employees to fund boom

2 months ago by VetOfTheSeas to c/business

Oracle laid off ~13% of its staff to fund a $300B computing deal with OpenAI. Now, a credit downgrade and $7B in required power grid guarantees put the massive project in jeopardy.

disorderly 69 points 2 months ago

As a result, Oracle is now required to provide cash collateral or a letter of credit in the astronomical sum of over $7 billion just to connect the building to the power grid, a setup whose ongoing maintenance will cost the company more than $100 million annually.

It's been positively infuriating to watch government bodies bend every fucking law for these companies at the expense of their constituents. I am glad that Wisconsin is telling them to put up or shut up.

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big_slap 19 points 2 months ago

infuriating is an understatement for sure 🫩

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NaibofTabr 52 points 2 months ago

These companies are cannibalizing themselves to pump money into provably unreliable technology.

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gdog05 13 points 2 months ago

The end goal is obviously not money. At least not in currency and economy as we currently know it. Rather the individual fiat bearers for the cost of existence for everyone.

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4am 6 points 2 months ago

I’m glad I’m not the only one who sees the true grift

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Bohne93 5 points 2 months ago

Ouroboros devours itself not because it wants to.

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Zier 25 points 2 months ago

I hope they all go bankrupt. This is gambling addiction at it's highest peak. And the higher the peak, the thinner the oxygen.

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Racoonwithbenefits 10 points 2 months ago

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eleijeep 6 points 2 months ago

It should be the pension funds that are holding the bag that get bailed out. The people who executed the fraud should go to jail.

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GardenGeek 2 points 2 months ago

Whether or not this is a glimmer of hope remains to be seen: If Trump and his cronies keep this up, the U.S. will simply no longer be able to save its AI companies. The bubble is too big, and the U.S. is currently losing its credibility as a debtor on the global stage... Of course, they can print money, but that will lead straight to disaster.

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finallymadeanaccount 2 points 2 months ago

Whichever ones pay the highest bribes.

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Aceticon 9 points 2 months ago

The bankrupcy of Oracle when it blows up will be the silver lining of this bubble.

And Meta and Microsoft getting seriously screwed.

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ZeroGravitas 7 points 2 months ago