Thread regarding Oracle Corp. layoffs

But how could he have known

Well, if he had an Oracle...

Larry really botched the timing on this. But how could he have known that:

• We would start a war in the middle east
• economic conditions would decline as a result
• investors would finally look more critically, past all the media hype and start questioning the industry's ROI
• senate, house and state government changes in, soon to be followed by increased fiscal oversight

Really bad timing for Larry but it's going to be great fun for the rest of us watching him take it in the shorts.

@bj Oracle is actually amazing when you’re on top! Nice name choice by the way

Worse, they're spending billions on GPUs, which are not fully optimized for AI workloads*, and top of that, will be obsolete in 3-4 years.

It's a short term strategy with lots of red flags long term

• Purpose-built accelerators like NPUs and TPUs are both faster and use less energy (thus generating less heat, thus needing less cooling) are what the serious players like Google are using.

Open AI has a junk debt rating. So, as a retail investor you can certainly race to buy at IPO based on their fantasy valuation if you still believe all the hype. IMO, you'll ending up being a bagholder if you do.

https://www.forbes.com/sites/brandonkochkodin/2026/10/12/ai-powered-bond-rating-startup-says-open-ai-debt-is-junk-anthropic-is-barely-investment-grade/

@dy

Additionally, Oracle would have to get in line along with everyone else that OpenAI owes money to.

@OP, @ba
I suggest you spend a little time doing some of your own research and look past the sensational, but very tired screeching of the tech media. For instance those valuation articles on anthropic and openai are absurd articles designed to hype the "value" of 2 companies that have both been purposely obfuscating how bad their financial pictures are.

@ba the first time OpenAI has to publicly disclose their financials their valuation will become far less than whatever fantasy number they are crowing about now.

Oracle su-ks

@b9

Current OpenAI valuation is around $1.25 trillion before the IPO, so it seems Oracle could still get $350 billion equity for OpenAi if push comes to shove; but in reality not sure if this is a practical solution

@b6
Well, Oracle has a massive debt load that they have to pay back. Something on the order of $135B? (Can't remember exactly off the top of my head). Plus, they are paying very high interest on that debt. The only AI infrastructure provider in worse financial shape right now is Coreweave).

So if OpenAI isn't generating substantial revenue/profit (they aren't and they won't be) then even with an IPO their stock won't have much value. Remember that thet have a sh*t-ton of debt too along with unrealistically large RPOs (like the $300B they will owe Oracle with payments starting in FY28).

Honestly, given the geo-political and economic developments so far in 2026, it looks like many planets are aligning against any possible Oracle success.

Anyone who looks at OpenAI rationally now is going to conclude that they have no shot. None. Then, the next domino is Oracle because without that $ coming from OAI next year then Oracle starts defaulting on their debt. And God knows what other dominoes will be falling by then.

Strap in!

If openAI has a successful IPO, Oracle can still get equity in OpenAI, in the case of OpenAI doesn’t pay back its due loan to Oracle, isn’t it?

In this case, the Oracle investment wouldn’t be too risky; I’m just trying to figure out the risk exposure from Oracle perspective

My take? It's going to drive Oracle into bankruptcy.

Let me know if you have any other questions.

No one cares