Oracle fires 21,000 employees to fund AI spending

Posted by DemiGuru 17 hours ago

Comments

Comment by dmix 16 hours ago

AFAIK this article is not discussing new layoffs, this was previously discussed 3 months ago

https://news.ycombinator.com/item?id=47587935

The angle of the article is basically they did these layoffs and now also face some serious debt risks. Which was also obvious a few months ago. Oracle made a huge gamble, even more so than other big tech firms.

Comment by unaib 16 hours ago

Very good timing for this contract with the Pentagon then,at just the right amount.

https://ca.finance.yahoo.com/news/pentagon-awards-oracle-nea...

Comment by beardyw 15 hours ago

AI companies want their customers to lay off people so that when they turn up the prices to "barely profitable" they will be forced to pay up.

Comment by ecocentrik 16 hours ago

This news is a month old.

Comment by gordian-mind 15 hours ago

Requiring $7 billion in collateral, nearly half the cost of the entire $15 billion project, to insure the utility’s full capital investment in case the company walks away, is completely insane. “Existing customers should not subsidize data centers” seems like pure demagogy there.

Comment by qlte 14 hours ago

If the details in this article are correct, it’s because they need $7 billion dollars worth of power infrastructure built out for their 1GW datacenter, not an arbitrary punitive penalty.

You seem convinced it has to be demagogy but that’s a significant amount of concentrated risk for the utility on a single project that could evaporate and leave them holding the bag, forcing rate increases for existing ratepayers.

https://archive.md/voqjr

  Local utility We Energies’ “very large customer” tariff requires any data centre developer with an S&P rating below single A minus to post collateral in the form of cash or a letter of credit. The size of the collateral is determined by the value of any power plants and transmission lines built to service the data centre.

Comment by TitaRusell 14 hours ago

These companies all need government funded infrastructure to profit from. Basically tax payer money.

At least in a Cyberpunk world Arasaka has their own universities and power plants. We can't even have that.

Comment by krunck 13 hours ago

https://archive.ph/tgNR3

Comment by ChrisArchitect 16 hours ago

[dupe]

Recent related:

Oracle could face $7B collateral bill for Wisconsin data centre

https://news.ycombinator.com/item?id=48993488

S&P Global has lowered Oracle’s creditworthiness from BBB to BBB-

https://news.ycombinator.com/item?id=48909768

And 3 months ago:

Oracle slashes 30k jobs

https://news.ycombinator.com/item?id=47587935

(also this exact article yesterday with a bunch of upvotes and comments, but doesn't matter https://news.ycombinator.com/item?id=49025754)

Comment by rickydroll 14 hours ago

Am I the only one who sees the similarity between Larry Ellison and Jean-Baptiste Emanuel Zorg? I mean, other than they're both evil and crazy.

https://villains.fandom.com/wiki/Jean-Baptiste_Emanuel_Zorg

Comment by danlitt 17 hours ago

Just one more hit. Just one more hit. We're gonna make it this time. It's going to the moon....

Comment by sciencesama 16 hours ago

jpost posting is very interesting !

Comment by krona 16 hours ago

Larry is big news in Jerusalem, what do you expect?