This week Microsoft stock tanked -12% on revelations that 45% of its Azure customer backlog is OpenAI.
Oracle is now struggling to get loans to pay for its data center buildout to meet its $300B deal with OpenAI. They may need layoffs to come up with the money.
The underlying theme being bankers don’t believe OpenAI will have the money to pay these bills and it’s pulling down companies doing business with it.
cio.com/article/4125103/oracle…
Oracle may slash up to 30,000 jobs to fund AI data-center expansion as US banks retreat
Oracle is considering workforce cuts and selling Cerner to alleviate financial pressure, warns investment bank TD Cowen.Gyana Swain (CIO)
This entry was edited (3 days ago)
reshared this
Martin Rundkvist
in reply to Dare Obasanjo • • •Tanquist
in reply to Dare Obasanjo • • •Sir Osis of Liver 🇨🇦 🇲🇽
in reply to Dare Obasanjo • • •Oracle and OpenAI are both a mess, and debt holders are starting to turn on them.
reuters.com/sustainability/boa…
Kierkethumbs up convincingly
in reply to Dare Obasanjo • • •Jennifer Kayla | Theogrin 🦊
in reply to Dare Obasanjo • • •Left unsaid in the article is that if a company is selling off or divesting itself of crucial assets in order to pay its present debts, such as in this case firing the workforce it needs to recover from those debts and rebuild its market base, then that company is on its way out.
Oracle is proper fucked, and they did it to themselves.
GhostOnTheHalfShell
in reply to Dare Obasanjo • • •iwein
in reply to Dare Obasanjo • • •there we go, I guess.
The us stock market being wiped out is the only reasonable outcome from here, don't you think?
I was surprised it lasted this long, so I guess I'm missing some tricks being used to prop it up.
Btw, EU pension fund already starting to sell us bonds, and the $ is going down too, so it's not going to be contained to wall st.
Perfect storm...The 2008 crash got nothing on this one, if you ask me.
Hannah Steenbock reshared this.
Scott Grimmett
in reply to Dare Obasanjo • • •Hedders
in reply to Dare Obasanjo • • •