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

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

#11

Post by unreal6 »

hobonation wrote: post #4

Is it me or do none of the AI companies have a "moat" in the Ben Grahmm sense. I use their services, but I frankly don't care who provides it. I'll chase the chepest/best and have no issue switching from one to another. The only moat I can see is Microsoft providing its services to companies in its Azure system. Nervous IT departments probably like that it's not leaving their control if Bob in the SAP team spins up s…

> I use their services, but I frankly don't care who provides it. I'll chase the chepest/best and have no issue switching from one to another.

For the hyperscalers, there is an ease of remaining in the Azure/AWS/GCP fabric from a data provenance perspective, particularly for regulated industries or large, risk-averse enterprises. There's also, of course, a certain network egress tax in most cases.

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

#12

Post by twoodfin »

hobonation wrote: post #4

Is it me or do none of the AI companies have a "moat" in the Ben Grahmm sense. I use their services, but I frankly don't care who provides it. I'll chase the chepest/best and have no issue switching from one to another. The only moat I can see is Microsoft providing its services to companies in its Azure system. Nervous IT departments probably like that it's not leaving their control if Bob in the SAP team spins up s…

Amazon Bedrock is probably middlemanning an insane amount of token consumption these days for the same reasons.

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

#13

Post by monocasa »

dj_axl wrote: post #5
mjcl wrote: post #3

Earlier quoted context omitted.

They can sell the software business to broadcom.

They can rent out their AI infra to The Hyperscalers.

I think the hyperscalers are smart enough to not let Oracle be their landlord.

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

#14

Post by unreal6 »

twoodfin wrote: post #12
hobonation wrote: post #4

Is it me or do none of the AI companies have a "moat" in the Ben Grahmm sense. I use their services, but I frankly don't care who provides it. I'll chase the chepest/best and have no issue switching from one to another. The only moat I can see is Microsoft providing its services to companies in its Azure system. Nervous IT departments probably like that it's not leaving their control if Bob in the SAP team spins up s…

Amazon Bedrock is probably middlemanning an insane amount of token consumption these days for the same reasons.

Is Bedrock a "middleman?" I believe that they run all inference inside of AWS data centers, on their own infrastructure.

Their new endpoint even promises zero operator access [0]

[0] https://aws.amazon.com/blogs/machine-learning/exploring-the-...

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

#17

Post by wmf »

unreal6 wrote: post #14
twoodfin wrote: post #12

Earlier quoted context omitted.

Amazon Bedrock is probably middlemanning an insane amount of token consumption these days for the same reasons.

Is Bedrock a "middleman?" I believe that they run all inference inside of AWS data centers, on their own infrastructure. Their new endpoint even promises zero operator access [0] [0] https://aws.amazon.com/blogs/machine-learning/exploring-the-...

Weights are worth far more than data centers.

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

#18

Post by twoodfin »

unreal6 wrote: post #14
twoodfin wrote: post #12

Earlier quoted context omitted.

Amazon Bedrock is probably middlemanning an insane amount of token consumption these days for the same reasons.

Is Bedrock a "middleman?" I believe that they run all inference inside of AWS data centers, on their own infrastructure. Their new endpoint even promises zero operator access [0] [0] https://aws.amazon.com/blogs/machine-learning/exploring-the-...

Sure, but fundamentally they’re acting as a distributor of someone else’s product in the form of the frontier models. That’s a classic middle-man.

No value judgement. I think this is a fantastic strategy.

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

#19

Post by ceejayoz »

crims0n wrote: post #10
hobonation wrote: post #4

Is it me or do none of the AI companies have a "moat" in the Ben Grahmm sense. I use their services, but I frankly don't care who provides it. I'll chase the chepest/best and have no issue switching from one to another. The only moat I can see is Microsoft providing its services to companies in its Azure system. Nervous IT departments probably like that it's not leaving their control if Bob in the SAP team spins up s…

Google has a bit of a Network Effect going... my vehicle got an OTA update to use Gemini. Between that, search, storage, and the YT Premium bundle it was enough to convince me to float a subscription.

> my vehicle got an OTA update to use Gemini

G. A. H.

edit: Y'all downvoters want genAI in your cars?!

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

#20

Post by Zsfe510asG »

There is AI data center overcapacity already. The KOSPI crashed last week, and it's a leading indicator for the cyclical hardware industry. It already had been that indicator in the 2000 bubble.

I don't know what possessed Ellison to ruin a functioning company, but it will be interesting if he gets a margin call for ORCL's other debt exposures, which are Ellison's massive loans against his ORCL stock.

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