Over the past few weeks, several US banks have pulled off from lending to Oracle for expanding its AI data centres, as per a report.
This particular source seems sketchy, but the broader context supports the core of this story.
There was a report in January from TD Cowen that Oracle needed to free up cash as banks tightened up lending for data center deals, and that certain projects were on hold and in jeopardy of being canceled. That same report projected that Oracle might lay off 20,000 to 30,000 workers.
Then, just this last Friday, Bloomber reported that Oracle and OpenAI canceled their plans to expand their flagship data center in Texas as part of their $500 billion “Stargate” initiative. Here’s the Reuters article describing it at a high level, because the original report is paywalled.
So everyone is looking back at that January report and seeing the recent data center news as confirmation that Oracle wants to free up cash by laying off staff.
Yes, clearly it is the human staff that needs to be cut from the budget here. Fucking imbeciles.
I hope oracle tanks and takes Ellison with it
this may be one of the early signs of a burst(besides the economy falling due to that one war i think?)
They fired people for AI, now they fire them without AI. Please tell me how they plan on sustaining an economy where only the 1% has discretionary income?
But Oracle was building those data centers for OpenAI. OpenAI is going to be used by the Pentagon. Bailing Oracle out is now a matter of National Security!! If this has to come off of the taxes paid by the people they just laid off, that’s unfortunate but… have I mentioned National Security?
They don’t need an economy. They need obedient workers
Obedient unemployed
First they need to destroy your income, then they can make you do whatever they want
Control instead of trust, a problem as old as time. Trust would lead to prosperity, control, if not absolute, will always eventually fail - and it’s never absolute.
I cannot wait for this bubble to finally burst.
It’s gonna suck for the working class WAAAAAAAAAAAAAAAAY more than the people who will lose their fortunes as a result of the bubble popping
sorry
it always does
Michael Saylor, one of the biggest owners of one of the other “doesnt actually do anything” bubbles - Bitcoin - is a great example. He made a fortune during the dot com bubble.
With that said, if I have to eat hard tack and canned beans and use leftover charcoal from the park BBQ grills instead of toothpaste in order to never have another AI bullshit feature shoehorned into my existence, it might be worth it
Yes, I am well aware that we live under capitalism.
The big bubble. May it pop before we do.
lol
Lmao, even
Rotfl, I daresay.
I was listening to a finance YT vid last night and the dude said if it wasn’t for the enormous AI spend, the US would be deep in a technical recession now.
obviously the fault of immigrants and those on food stamps though /s
Those damn immigrants taking up all of the best landscaping, slaughterhouse, roof tarring, and crop picking jobs.
Ironically the only jobs that Anthropic and OpenAI claim AI won’t take. All those newly minted AI billionaires and nobody to maintain their golf courses… How sad is that?
What good is being super wealthy if you can’t feel superior to other people?
We are in a deep recession?
The enormous AI spend isn’t going to me, or you, or anyone I ever met.
True, but line isn’t going down yet.
Because none of the checks they’ve kited have come due
Is it the first sign of a burst?
Sit
If the banks don’t see the value in it, it’s only a matter of time
It’s always been just a matter of time
Once that glorified autocomplete turns sentient you’ll look like quite the fewel.
Hahahahahahaha! inhale hahahahahaha!
It’s happening!
(I might make a meme video featuring Bob Ross smiling in front of a nice greenery, while some nice music playing.)
