Oracle laid off ~13% of its staff to fund a $300B computing deal with OpenAI. Now, a credit downgrade and $7B in required power grid guarantees put the massive project in jeopardy.

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[–] 69 points 2 months ago (1 child)

As a result, Oracle is now required to provide cash collateral or a letter of credit in the astronomical sum of over $7 billion just to connect the building to the power grid, a setup whose ongoing maintenance will cost the company more than $100 million annually.

It's been positively infuriating to watch government bodies bend every fucking law for these companies at the expense of their constituents. I am glad that Wisconsin is telling them to put up or shut up.

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  • [–] 52 points 2 months ago (3 children)

    These companies are cannibalizing themselves to pump money into provably unreliable technology.

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  • [–] 25 points 2 months ago

    I hope they all go bankrupt. This is gambling addiction at it's highest peak. And the higher the peak, the thinner the oxygen.

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  • [+] 10 points 2 months ago* (last edited 2 months ago) (3 children)
  • [–] 2 points 2 months ago

    Whether or not this is a glimmer of hope remains to be seen: If Trump and his cronies keep this up, the U.S. will simply no longer be able to save its AI companies. The bubble is too big, and the U.S. is currently losing its credibility as a debtor on the global stage... Of course, they can print money, but that will lead straight to disaster.

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  • [–] 9 points 2 months ago

    The bankrupcy of Oracle when it blows up will be the silver lining of this bubble.

    And Meta and Microsoft getting seriously screwed.

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  • [–] 7 points 2 months ago

    To be clear, "boom" in this context is the original, dynamite generated sound?

    I'm into it.

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