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Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
11–20 of 249 posts
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#12And, with this, the economic contagion begins.
Before this step, we had non-existent money loaned to build datacenters powered by non-existent power infrastructure to support future load that will never exist, with guaranteed revenue from companies that do not, and will never be able to pay.
Previously, this was propped up with circular revenue and investment. Now it's going to be propped up by dismantling the US tech industry.
This does not end well.
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#13We will continue to be told this is because AI is driving efficiency instead of that it's driving CapEx and investors won't tolerate FCF collapsing.
I strongly believe AI will drive efficiency. I’m less certain about whether that’s already happening or will happen in the future and when in the future.
However, I’ve already seen a CTO of a F100 company explicitly state that whether AI is driving efficiency or not, the capital investment, and more importantly, the promises of efficiency to investors will mean some people will be let go.
Efficiency is output/input. The input is easy to measure. It’s cost and in this particular case salaries.
Output is a lot harder to measure, which means it can be fudged easily.
So you cut the easily measurable inputs and inflate the easily manipulable output.
One could imagine the reverse would also be possible, where you maintain inputs but inflate the output, but there is an asymmetry where investors will reward you for cutting costs even if there are no efficiency advantages that makes cutting inputs more sellable than inflating outputs.
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#14Earlier quoted context omitted.
Everyone is holding their breath praying AGI either will, or will not, come before the chickens come home to roost.
Not sure that makes sense. As amazing a technical feat as AGI will be, does it follow that s.tons of money will immediately be made? That's not really how humans act, historically. Any migration to new technology takes years, decades. There are still steam engines pulling revenue service trains.
It will drive capital into data centers, which is good for Oracle.
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#15Why is oracle invested in ai at all? It seems entirely unrelated to the value they offer.
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#16Earlier quoted context omitted.
Not sure that makes sense. As amazing a technical feat as AGI will be, does it follow that s.tons of money will immediately be made? That's not really how humans act, historically. Any migration to new technology takes years, decades. There are still steam engines pulling revenue service trains.
Yes - if AGI is made, nearly immediately every knowledge worker’s labor value goes to zero over night. This may or may not include AI researchers.
And probably not much longer after that, the bloodshed
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#17Why is oracle invested in ai at all? It seems entirely unrelated to the value they offer.
What value does Oracle offer?
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#18Earlier quoted context omitted.
Not sure that makes sense. As amazing a technical feat as AGI will be, does it follow that s.tons of money will immediately be made? That's not really how humans act, historically. Any migration to new technology takes years, decades. There are still steam engines pulling revenue service trains.
It will drive capital into data centers, which is good for Oracle.
Or maybe it won't. If it can be made efficient like humans it might be at the edge mainly.
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#19And, with this, the economic contagion begins. Before this step, we had non-existent money loaned to build datacenters powered by non-existent power infrastructure to support future load that will never exist, with guaranteed revenue from companies that do not, and will never be able to pay. Previously, this was propped up with circular revenue and investment. Now it's going to be propped up by dismantling the US tec…
The future load might definitely exist, but will it at a sustainable pricepoint?
Re: Oracle may slash up to 30k jobs to fund AI data-centers as US banks retreat
#20Why is oracle invested in ai at all? It seems entirely unrelated to the value they offer.
They are a software vendor, and the theory goes all the software vendors will go away, because AI will just build your business software on the fly. So they are trying to "become AI"!
Also Oracle is owned by Larry Ellison and hes in a competition with the other tech bros.