Etiido Uko is a news contributor for Tom's Hardware covering the latest updates in big tech and the PC industry. He is a mechanical engineer and senior technical writer with over nine years of experience in documentation and reporting. He is deeply passionate about all things engineering and technology, and is an expert in gadgets, manufacturing, robotics, automotive, and aerospace. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-24/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Etiido Uko Social Links Navigation News Contributor Etiido Uko is a news contributor for Tom's Hardware covering the latest updates in big tech and the PC industry. He is a mechanical engineer and senior technical writer with over nine years of experience in documentation and reporting. He is deeply passionate about all things engineering and technology, and is an expert in gadgets, manufacturing, robotics, automotive, and aerospace.
usertests Oracle signed a massive $300 billion, 5-year deal with OpenAI last year, and another with Meta, to provide AI compute power, as the company continues its aggressive expansion into AI cloud infrastructure. Oracle is reportedly burning cash and issuing up to $40 billion in new debt and equity to stay competitive. Ed Zitron is pointing to Oracle as an example of a company that could collapse as a result of the bubble bursting. We could see another 141,000 layoffs. At least Meta might be able to pay its bills using an infinite ad money glitch. Reply
alan.campbell99 usertests said: Ed Zitron is pointing to Oracle as an example of a company that could collapse as a result of the bubble bursting. We could see another 141,000 layoffs. At least Meta might be able to pay its bills using an infinite ad money glitch. Indeed, they are highly dependent on OpenAI (who is still currently incinerating money) to be able to pay them. The big hyperscalers for now still have their primary products to fall back on, Oracle has apparently plateaued as far as their primary business is concerned so along with the debt they're burying themselves under they could indeed be screwed. A bailout wouldn't be outside the realms of possibility but that would still have all sorts of bad consequences. They've been called a law firm with a SaaS company attached so some might well celebrate them imploding. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/oracle-lays-off-21-000-employees-in-just-12-months-due-to-ai-adoption-and-costly-ai-infrastructure-ambitions-says-layoffs-will-continue-as-internal-ai-deployment-grows#main
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