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Banks are now trying to offload the AI data center debt they just underwrote (startupfortune.com)
submitted 3 days ago by to c/technology@lemmy.world
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[–] 36 points 2 days ago (6 children)

It’s even better because they signed contracts that guarantee that capacity to OpenAI, guarantee payments to their creditors, and Oracle is on the hook for it all with no outs.

Which is why I think it’s all a play, oracle famously is very lawyer heavy, they wouldn’t sign such stupid deals for no reason.

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  • [–] 40 points 2 days ago (5 children)

    they wouldn’t sign such stupid deals for no reason.

    Greed. The reason was greed. They bought into the hype and thought they could print money.

    And all the tech companies are doing it, Oracle was just the sick man of the bunch, and will be the first to fall, dragging the rest down with them.

    All because they're offloading trillions in debt to special purpose vehicles, the same thing that tanked Enron, the difference is that Enron, with $400 million in debt, was lying about it, and the current tech companies doing the exact same shit, are disclosing the debt legally, but still hiding it in the fine print of their disclosures.

    The debt will still crash the economy, but at least it's out in the open?

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  • [–] 18 points 2 days ago* (1 child)

    Also Larry is not nearly as sharp or thorough as he used to be, and he's turned into a bit of a crumugeonly headstrong dick in his old age. No 82 year old is as sharp as they ised to be, despite how people like to lie about it. No 70 year old feels 40 anymore either. He has made numerous mistakes inside Oracle, and now he has run the whole company straight off a cliff, as aging boomers will tend to do.

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  • [–] 26 points 2 days ago (2 children)

    Getting AI FOMO and mortgaging your entire company’s future for it. smh

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  • [–] 35 points 2 days ago (1 child)

    And tanking the entire economy is the process.

    Also, Larry Ellison (who can fuck right off) has leaned on his Oracle stock to fiance the buyout of all the media companies he's gobbling up to build yet another right wing propaganda ecosystem.

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