Oracle is shaking things up in a big way!
The tech giant is reportedly cutting thousands of jobs as it dives headfirst into the AI deep end. This move comes amid a nosedive in stock prices, thanks to hefty capital commitments for building AI infrastructure. It’s like a plot twist in a tech thriller!
Oracle's core business is feeling the heat from the competitive world of generative AI models. Add to that the investor jitters over Oracle's rising debt for AI investments and dwindling cash flow, and you've got a recipe for boardroom drama.
Despite the turbulence, Oracle is still pushing its flagship database. But with cloud rivals like Amazon breathing down its neck, Oracle is upping its game by investing in data centre infrastructure to handle AI workloads. The catch? They're smaller than their cloud competitors and leaning heavily on the debt market to fund this ambitious buildout.
Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!
Access from your preferred podcast provider by clicking here
Earlier this year, Oracle announced plans to raise a whopping $50 billion in debt and equity. And just last month, they revealed a jaw-dropping 359% increase in remaining performance obligations, thanks to a colossal $300 billion deal with OpenAI. Talk about betting big!
With plans to cut 20,000 to 30,000 jobs, Oracle aims to boost its free cash flow by up to $10 billion. Executives are optimistic that their AI investments will eventually pay off, despite current supply challenges. So, will Oracle's AI adventure lead to a triumphant tech tale or a cautionary corporate caper? Only time will tell!
Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!
Access from your preferred podcast provider by clicking here
Made with TRUST_AI - see the Charter: https://www.modelprop.co.uk/trust-ai