Oracle files to sell $20B in new stock, bonds to finance AI buildout

Oracle does not have any proprietary IP that OpenAI depends on. That means Oracle is providing commodity services to OpenAI.

AI hardware is advancing rapidly. If NVIDIA's next generations deliver radically more tokens per watt and per dollar, an Oracle facility designed, financed, and contracted around an older GPU generation can be overtaken before it is fully online or fully monetized.

That's a big risk.

And to finance this they are making deep cuts to the ERP business where Oracle does have proprietary IP.

I would assume it's to hire more lawyers.

Half of that would be in stocks, resulting in 2.5% dilution for shareholders at the current market cap. But the stock is down 8%.

Previously, I thought investing in AI companies would be a good hedge against AI taking my job, but I hadn't considered the possibility that they fund the build out by issuing shares. Is there no reprieve?

Broadcom is waiting to buy up the pieces.

Skynet finally? (Terminator movie used Oracle building as Skynet HQ, forgot which one)

Misread the title at first as "to finance AI bailout".

Of all the companies in the world this is one of the ones I root against the hardest. Hoping for the worst outcome on this investment.

I hope nothing but the worst for Oracle as a corporation...though nothing against the technical talent there.

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