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.
It is burying old news in headline. The consequences/pitfalls of their “strategic shift” are fairly new. The layoffs were explicitly justified for pivot to datacenters that OpenAI will “surely” be able to rent. The new extra problems in that strategic shift just makes them look worse for going all in on the bubble.
It is burying old news in headline. The consequences/pitfalls of their “strategic shift” are fairly new. The layoffs were explicitly justified for pivot to datacenters that OpenAI will “surely” be able to rent. The new extra problems in that strategic shift just makes them look worse for going all in on the bubble.