Bankruptcy?

Transcript: The 500 billion dollar company Oracle is now on the brink of bankruptcy.
And the situation is only getting worse.
Let me explain.
The company has now taken on over 130 billion dollars to rapidly build A I.
Data centers to satisfy. Their over $638 billion in demand for A I capacity.
Now it doesn't sound that crazy until you look at the numbers closer.
Nearly 50% of the entire demand comes from just one company
Open A I. The same company that lost over $38 billion last year
and is on track to lose over $27 billion this year.
The Company has no path to profitability
and if they pull out their commitments to Oracle,
then they have a 300 billion dollar problem.
And investors are already anticipating this is going to happen.
The cost of insuring Oracle's debt has skyrocketed to over 200 basis points,
which is even higher than when Lehman Brothers collapsed in 2008.
But it gets worse. The same man
that made over a billion dollars shorting the housing market in 2008,
Michael Burry, just put out a massive short position on Oracle.
And if he's right like he usually is,
then this could collapse the entire A I bubble.

Source:
https://vm.tiktok.com/ZN8Ru8Ujp/

#AI #Bankruptcy #FinancialServices #Layoffs

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18 replies (most recent on top)

Random chinese tiktok video (Oh wait oracle own it!) was your news source? You're id--t

@br The US is a net energy exporter, but does import some heavy grade cruse oil.

@hv likely dozens of millions worldwide, likely more

A ton of people would cheer the end of Oracle.

@hh Like you assume they have the hardware! :D

@d6 it’s as if you assume they have that business.

@h4 their credit rating has already been ki-led. It’s one downgrade away from junk investment grade.

Bankruptcy just means they get to restructure debt it doesn't necessarily mean they go out of business. Companies go in and out of bankruptcy all the time. It will ki-l the credit rating for a while but could save the company.

@ct Why would you raise that question? It's as if you assume that hardware does not work for other businesses.

@c3 Do they have that business?

Do you mean no one other than Open AI needs data centers and HIPAA compliant data and learned models from Oracle? And bankruptcy does not mean disappearance.

Oil in U.S. Strategic Petroleum Reserve falls below 300 million barrels, lowest since 1983.

Considering the US uses an average of 20 million barrels a day, that's about 2 weeks of oil left.

Do we believe this ?

No Oracle will not go bankrupt.

"“How did you go bankrupt?” Bill asked.

“Two ways,” Mike said. “Gradually and then suddenly.”

The dialogue above is from Ernest Hemingway’s 1926 novel, The Sun Also Rises.

It’s often attributed to Mark Twain or F. Scott Fitzgerald, or misquoted as something like “At first you go bankrupt slowly, then all at once.” But the theme is the same.

Nations go bankrupt in the same way. Banking/corporate collapses occur in the same way. Currency crises strike in the same way. They all happen gradually… and then suddenly. Sometimes overnight."

you underestimate political corruption in the US. your taxes will bail out both OpenAI and Oracle

Its just fear-mongering. Oracle wont go bankrupt. Reason is it has the hardware which it can repurpose to some other AI company if not for OpenAI. Demand for hardware for power hungry AI companies is not going anywhere.

When the end comes, it will come swift and hard.

Michael Burry, just put out a massive short position on Oracle

Burry was short since around $200 levels and has likely exited his shorts at $115 which brought the share back up to current levels.

Hard to validate the other claims. Only time will tell

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Bankruptcy?

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