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Oracle fires 21,000 employees to fund AI spending

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Re: Oracle fires 21,000 employees to fund AI spending

#11

Post by qlte »

gordian-mind wrote: post #10

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.

https://archive.md/voqjr

  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.

Re: Oracle fires 21,000 employees to fund AI spending

#13

Post by TitaRusell »

qlte wrote: post #11
gordian-mind wrote: post #10

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. ht…

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.

Re: Oracle fires 21,000 employees to fund AI spending

#16

Post by gordian-mind »

TitaRusell wrote: post #13
qlte wrote: post #11

Earlier quoted context omitted.

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. ht…

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".

Re: Oracle fires 21,000 employees to fund AI spending

#17

Post by johnnyanmac »

gordian-mind wrote: post #16
TitaRusell wrote: post #13

Earlier quoted context omitted.

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.

Re: Oracle fires 21,000 employees to fund AI spending

#18

Post by gordian-mind »

johnnyanmac wrote: post #17
gordian-mind wrote: post #16

Earlier quoted context omitted.

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.

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