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An Anonymous Coward writes:

According to a research report authored by investment bank TD Cowen and seen by CIO magazine, Oracle may "cut 20,000 to 30,000 jobs" and sell its healthcare SW division, Cerner, in order to fund their AI datacenter buildout:

https://www.cio.com/article/4125103/oracle-may-slash-up-to-30000-jobs-to-fund-ai-data-center-expansion-as-us-banks-retreat.html [cio.com]

According to the article, "multiple US banks have pulled back from Oracle-linked data-center project lending," which has "[pushed] borrowing costs to levels typically reserved for non-investment grade companies." Furthermore, "Oracle has already tapped debt markets heavily... and US banks are increasingly reluctant to provide more."

Two analysts interviewed in the article have differing views. Sanchit Vir Gogia, of Greyhound Research, views Oracle cloud contracts as a "shared infrastructure risk," stating, "If they can’t fund it, they can’t build it. And if they can’t build it, you can’t run your workloads.” Franco Chiam of ICD Asia/Pacific has a more optimistic take on Oracle's finances, pointing to "cloud infrastructure revenue growing 66% year over year... and GPU-related infrastructure up 177%"

I'm personally wondering about where all that revenue for GPU-related infrastructure comes from. If we are in an AI bubble, can demand be sustained?

Original Submission