Oracle May Slash Up To 30,000 Jobs (theregister.com) 19
An anonymous reader shares a report: Oracle could cut up to 30,000 jobs and sell health tech unit Cerner to ease its AI datacenter financing challenges, investment banker TD Cowen has claimed, amid changing sentiment on Big Red's massive build-out plans.
A research note from TD Cowen states that finding equity and debt investors are increasingly questioning how Oracle will finance its datacenter building program to support its $300 billion, five-year contract with OpenAI.
The bank estimates the OpenAI deal alone is going to require $156 billion in capital spending. Last year, when Big Red raised its capex forecasts for 2026 by $15 billion to $50 billion, it spooked some investors. This year, "both equity and debt investors have raised questions about Oracle's ability to finance this build-out as demonstrated by widening of Oracle credit default swap (CDS) spreads and pressure on Oracle stock/bonds," the research note adds.
A research note from TD Cowen states that finding equity and debt investors are increasingly questioning how Oracle will finance its datacenter building program to support its $300 billion, five-year contract with OpenAI.
The bank estimates the OpenAI deal alone is going to require $156 billion in capital spending. Last year, when Big Red raised its capex forecasts for 2026 by $15 billion to $50 billion, it spooked some investors. This year, "both equity and debt investors have raised questions about Oracle's ability to finance this build-out as demonstrated by widening of Oracle credit default swap (CDS) spreads and pressure on Oracle stock/bonds," the research note adds.
Re: Post AI crash data center glut (Score:2)
My future pool and spa chain of stores is just waiting to capitalize on these AI data centers going bust!
Re: (Score:2)
AWS built out a big DC in western China to take advantage of the cheap renewable power in the area, believing promises that it would be as free from interference as their Beijing DC was. When local authorities insisted on access that AWS found impermissible they sold it off, a year later it was mining Bitcoin. (No idea what it's doing now, since China no longer allows industrial level coin mining.)
Re: (Score:3)
That's a different one, the other was in Xinjiang. I was working in the AWS SOC at the time, we had the DC set up and they had just started filling the racks when the local authorities started insisting that they were going to have free access to whatever they wanted and refused to sign off on our occupancy permits. People were later openly told that if money passed hands and some low level but ridiculously reimbursed jobs were handed out to relatives that the problems would go away, but Amazon doesn't pay
Re: (Score:2)
>Amazon doesn't pay bribes, ever.
Just $40M for the IP rights to "Melania"?
Re: (Score:2)
Well, they do have a new CEO, so perhaps the policy has changed . . .
Burn in Hell (Score:3, Insightful)
Re: (Score:3)
Couldnt happen to a nicer company.
But its not lost on me that we're at a point in society that to build these infernally stupid AI rollouts people are finding savings by slashing health tech infrstructure*
"But AI will save us all".
*Oracle is everywhere in hospitals. They do a lot of stuff with hospital infrastructure software. And yeah, its the usual Oracle fare, overly expensive, underpowered, and if you try and replace it, they'll sue.
What do you expect from Whoracle? (Score:3)
Oracle has way too many employees (Score:2)
As a former Oracle employee, they have way too many seat warmers. They could probably function with 50% of their current payroll, assuming that they fire the right people, but that's a huge if.
30k is probably healthy if done competently.