alt Hacker NewsOracle made a $300B bet on OpenAI. It's paying the price
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If I'm reading the chart correctly, the current stock price of ORCL is 15% below the price before they announced the OpenAI deal in September. 40% down from the peak is one thing, but I see the net v.s. before the craziness as a better indicator of what's going on.
I've never heard good things about Oracle, I don't understand how people keep using their products.
It seems fitting. They destroyed Sun, destroyed Java, destroyed any developer or customer goodwill...and now they are destroying themselves.
Oracle’s massive bet on OpenAI might be financially risky, but its investments in AI farms could accelerate Java’s evolution for AI. While Python dominates training, inference is where the money is. Projects like OpenJDK Babylon hint at a future where the JVM becomes a serious player in AI inference.
EU contracts for SAP over Oracle would be so much easier if SAP would wean themselves of US cloud dependency.
This particular flavor of schadenfreude is scrumptious.
Will be interesting. Also the Paramount Skydance takeover bid is still pending. Paramount is ~15 billion market cap and the deal for Warner is ~77 billion.
Oracle bet the farm on AI, and that’s starting to look like a really bad idea. Commentary about delaying new data center buildouts for AI is freaking out the markets today that the bubble burst is starting. Credit default swap values are also now heavily leaning towards a bunch of AI investments going bust.
Tip: Ask your AI to design their DCs so that they can be easily converted into low income apartments. When you hear the bubble popping sound, it just means you're ready to pivot into the rental business.
This is such fake news. Oracle was paid $300 billion by Open Ai to develop server infrastructure, not that it's betting $300 billion on Open AI. The headline gets it 180 degrees backwards. That is why Oracle stock surged so much a few months ago. Oracle stock is still up 15% this year.
Oracle has bigger problems than OpenAI. They've been selling large enterprise contracts for the past 10 years and they're coming up for renewal. A lot of those enterprises don't feel they got a good value. If 10% to 20% of those enterprises fail to renew for another 10 years, then that could have a severe impact to Oracle. Their other issue is a lot of those enterprises are looking at migrating to PostgreSQL so they can migrate off of Oracle's RDBMS. Many have already deployed PostgreSQL for their department-level applications, so they can get the experience they need before tackling their enterprise-level applications.