Oracle to raise $50B as AI debt piles up

https://www.marketwatch.com/story/oracles-monster-25-billion-debt-financing-points-to-anxieties-around-ai-funding-b92c634b

by zerosizedweasle • 6 months ago

48 19 6 months ago

marketwatch.com

Thev00d00• 6 months ago

Oracle were 40B in profit in 2024.

Now they are out raising debt (again) and equity too, to fund DCs and hardware with no proven return.

I cannot comprehend it.

Ekaros2• 6 months ago

Me neither. Isn't that enough? Does the line always have to go up? It really look like stock market and tech companies are classic gamblers. No gain or profit is good enough to just take it and stop.

pjmlp• 6 months ago

Unfortunely yes, that is the MBA school, and then when the gamble fails, it is the employees that get shown the door, because company XYZ did not met their targets.

CEO might even get a bonus as payoff for a risky move, from shareholders point of view, go figure this logic.

dolphinscorpion2• 6 months ago

Other than ego, maybe he sees the writing on the wall for his core business? But seeing all these new AI companies being valued at hundreds of billions must have driven Ellison crazy

Ekaros2• 6 months ago

Correct business moves would have been to get Oracle products in all possible AI outputs... Not sure how that could be done, but still an idea.

Bombthecat• 6 months ago

It's 44 percent down the last 3 months...

iberator• 6 months ago

stock price, not assets.

nubinetwork• 6 months ago

How's that tiktok purchase going for you, Larry?

Gud2• 6 months ago

It curried favor, gained him an immense amount of data and I’m suspecting is a source of revenue from various black intelligence projects.

conartist62• 6 months ago

None of that matters if you run out of money to keep the lights on

dolphinscorpion2• 6 months ago

Greatest investment of his life, probably. A couple of billion and immense leverage with Trump. (they were many investors)

highspeedcaller• 6 months ago

Got him access to his pick of the kids’ menu, didn’t it?

ChrisArchitect• 6 months ago

Cleaned up url: https://www.marketwatch.com/story/oracles-monster-25-billion...

dang• 6 months ago

Changed from https://www.marketwatch.com/story/oracles-monster-25-billion.... Thanks!

Oracle to raise $50B as AI debt piles up

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