Over the past few weeks, several US banks have pulled off from lending to Oracle for expanding its AI data centres, as per a report.
I think this is two stories being mixed a bit here?
A bit over one month old, the lending issues: https://www.cio.com/article/4125103/oracle-may-slash-up-to-30000-jobs-to-fund-ai-data-center-expansion-as-us-banks-retreat.html
Now, confirmation of the cuts that were suspected since last year from Bloomberg: https://www.reuters.com/business/oracle-plans-thousands-job-cuts-data-center-costs-rise-bloomberg-news-reports-2026-03-05/
I’m not saying there is not a link between the events, but somehow the posted article does a weird rehash mixed with news, and is not even dated, and I don’t like that, so I’m sharing the individual news pieces as separate links for other’s benefit.
What does Oracle even do?
Boy you’re in for a ride.
Palantir runs on Oracle Cloud.
Oracle finances Paramount buying out Warner Bros.
Other shady shit Oracle does: https://thedreydossier.substack.com/p/the-merger-that-needed-a-war
Basically think Oracle is a competent League of Evil that can hide from the media spotlight.
Charge people who accidentally used their Java SDK.
They used to sell a pretty good (if complex) database system. However it hasn’t been popular for many years. I assume they still have big customers who are locked in.
These days they’re just another amorphous “cloud service provider”, and not a good one either.
I’ve been a software engineer for over 20 years now and tbh I couldn’t tell you even if my life depended on it. I know it’s a shit tier hosting service that people use because they offer 5$ worth virtual server for free with a valid credit card but that’s about it.
It’s one of those ancient paper shuffling IT companies that is 95% sale/middle mamager leeches, 5% wizard engineers carrying everything on their shoulders.
Sounds a lot like IBM.
At least IBM used to be cool and gave us things like SQL, DRAM and Thinkpads. Other than Java kits I couldn’t name a single useful initiative from Oracle. They just take existing inventions and shuffle enterprise papers.
Used to be cool…you might want to look a little bit further into IBMs past, specifically what they were doing during WW2…
Yes and like IBM they are in the business of getting out of business, and business is good!
DATACENTERs apparently, especially for AI.
The bubble popping seems inevitable at this point. Before the Giants were funding this by their core business plus loans backed by their core business. Now they’ve stretched their credit so much that no one’s giving them loans anymore and instead of cutting back on the building spree they’re making cuts to their core business.
They’re betting that their customers are so locked in that they won’t leave despite degradation in service. How deep oracle, AWS, googles hooks are in people remain to be seen, people seem to tolerate a lot of enshitification, but there’s gotta be a tipping point. Once they reach that and the core business crashes all the rest of the dominos will fall.
that is why they are trying to peddle this to governments in EU, USA so heavily, they know they will take on AI at face value, instead of testing the efficacy of using AI.
Great timing then, just as the states becomes a global pariah making every one else on earth have to reevaluate any business done with american based firms. Nations are worried about massive instability and war, no one has the appetite to gamble big on unproven tech dreams.
Once these companies have to start charging what it really costs to maintain and run these huge models. The number of use cases will shrivel.
Pop that bubble, baby!
One rich asshole called Larry Ellison.
He personally guarantees 40 billion from 111 bilion for the Paramount - Warner Bros acquisition.
I do wonder if this might put the financing there at risk lol.
which is being encouraged by Jensen
This is technically job loss caused by AI…
Note that the article is from the beginning of February.
Why did it take so long? You’d think these articles are staggered at the request of the owner So the small army he fired doesnt revolt
Fuckin explains a lot of the last month’s issues
YEEEEESSSSSS~
Real jobs or AI jobs.
It’s Oracle: It’s not like they deliver value either way.
Real Temporary Jobs building and managing the AI Datacenters.
That’s a good point to remember when future job numbers are shared.
Pull out, don’t pull out, we’re fucked either way.
old news!
