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

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21–30 of 378 posts

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

#21

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…

Nvidia has a moat. Hardware is hard. No one really competes with them for general compute

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

#22
post #5

Earlier quoted context omitted.

They can rent out their AI infra to The Hyperscalers.

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

Are they?

Anthropic is renting compute from a competitor, that also is known for their blackhat business practices.

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

#23
This is surprising to me. Judging by what appears to be the common sentiment here on HN - which is that AI inference is already profitable, and OpenAI is fairly valued by private markets.

Given that Oracle and Microsoft are major counterparties of OpenAI, it seems odd that their stocks have been performing so poorly recently. Can anyone square this circle for me?

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

#25

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…

Uhh. I actively and vocally avoid all things Microsoft. I see Microsoft and I immediately think buggy software with zero security.

That's fine, but your inexperience with large companies that are MS's bread and butter doesn't really give you any credibility here. It's the standard for a reason.

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

#27
post #21

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…

Nvidia has a moat. Hardware is hard. No one really competes with them for general compute

Oh great, good to know the shovel seller has the market cornered.

Now back to the conversation, do any of the gold miners have a moat? Or is this a race to the bottom?

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

#28
post #21

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…

Nvidia has a moat. Hardware is hard. No one really competes with them for general compute

AMD Instinct is their direct competitor for compute and they are better per dollar, better per watt, and out competing on raw performance.

Only thing holding them back is fab capacity which nVidia keeps buying in bulk to keep them small.

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

#29

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've been thinking for a while, there's not real winners here except the incumbent technology providers. Hear me out: all models are converging towards the same level, gains are getting smaller and harder to come by. The models are commodities nothing more.

This is the leap, nobody really wants to front a model for someone else. If i build an agent, or a service that requires a model, I'd prefer to push the model onto someone else, preferably at no cost. This is a leap as I'm sure right now, most people / businesses are thinking actually i do want to own / front the model.

However, if you accept the leap the easiest way to do this is to make the model the users problem.

From a business point of view that makes things really easy, from a customer point of view, they simply have to accept whatever their vendor of choice is pushing down their throats.

So as a business I build for whatever model Google makes available to android, and whatever model windows bundles, and whatever model Apple bundles, and, excluding the long tail of Chinese vendors and Linux (sorry, its always left out) and that's it, problem solved, and the customer picks up the tab for the tokens

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

#30
post #21

Earlier quoted context omitted.

Nvidia has a moat. Hardware is hard. No one really competes with them for general compute

AMD Instinct is their direct competitor for compute and they are better per dollar, better per watt, and out competing on raw performance. Only thing holding them back is fab capacity which nVidia keeps buying in bulk to keep them small.

Have you ever actually had anyone work with these chips? Developer ux on amd is terrible.
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