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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.
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...
[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)
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.
This news is a month old.
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.
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.
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.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.
You'll never guess what structure contributes most to "government funds": guess what, it starts with "com" and ends with "panies".
I paid 9 thousand in taxes this year, does that give me the privilege to take out 80k in loans, no questions asked? That's pretty much what you're arguing.
And that's not even a fair comparison. My loan wouldn't go towards something that ultimately raises everyone else's energy bills and become a noise pollution factor.
Is this the AI jobs apocalypse we heard about.
People who made the business what it is today, being sacked so the company can join the bubble? When it bursts those people can go and sell expensive databases to governments agencies under a new umbrella.
Just one more hit. Just one more hit. We're gonna make it this time. It's going to the moon....
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.
jpost posting is very interesting !
Larry is big news in Jerusalem, what do you expect?