Oracle knows OpenAI will go belly-up

From: https://www.telegraph.co.uk/business/2026/07/03/the-ai-bubble-is-bursting-but-behind-it-hides-an-even-great/

Re: semiconductor drop last week
The trigger seems to have been talk of a thousand plagues by the hybrid cloud giant Oracle, which ranged from wild overbuilding of data centres to stranded capacity, power and water shortages, permitting delays, credit risk and customer defaults.

Its annual report contained the cluster bo-b that “highly leveraged” customers had contracted more computing power than they could plausibly pay for. “We may experience risks of non-payment and non-performance in our dealings with such parties,” Oracle said.

Translation: “Oracle is saying that OpenAI may have ordered too much food, may not eat it all, and, worse, may not pay the bill,” said Ipek Ozkardeskaya from SwissQuote, a foreign exchange firm. Could ChatGPT be squeezed out and go the way of Firefox? It certainly could.

#AI #Semiconductors

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18 replies (most recent on top)

@k4 not being able to write and communicate your thoughts clearly is a sign of low intelligence. It is really not a high standard to expect. If you write emails and other internal communications that poorly you are going to be identified as someone who should be released and forget about getting your next job... you will be competing with 1000s of people who have the skills.

@jt oy vey, gramma na-i, oy vey
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@fx it is really sad that you can't write in complete sentences...

I suspect tech companies pumped this bubble to this obscene exactly to threaten to take down the whole US economy if they go bust. OpenAI is 100% will be bailed out by tax money.

Name one example of a company that is strategically important for US national security going out of business. They don’t. They just consolidate.

Goofy post. OpenAI is critically important for US national security. There is a 0% chance they disappear.

5 options, in order.
1) They succeed.
2) Acquired by another tech company. Ex. Bear Sterns > JP Morgan.
3) Acquired after seizure by US Gov. Ex. Washington Mutual > JP Morgan.
4) Gov bailout/nationalization. Ex. AIG.
5) Conservatorship by US Gov. Ex. Fannie Mae / Freddie Mac.

Were all of you under 18 in 2008? OpenAI isn’t going anywhere.

@ce, oracle's cash flow is negative.

The financial analysts keep screaming “buy Oracle” but the stock keeps going down.

@OP A company I worked for went belly up because its customers couldn't (or wouldn't) pay for the stuff we had built for them. I have zero confidence that OpenAI will be able to pay their bills, can't speak for the rest of O's customer base.

I feel like we're watching O's slo-mo destruction

it is unethical to…

What is “ethical” ? Can you provide the definition and a good example of it being displayed in the business world today?

In pursuit of new business, it is unethical to lower commitments to existing clients.

Nothing another layoff can fix.

@b3 Yet revenue is increasing. How?

@b3 in other words business as usual.

More layoffs, No staff, poor quality, poor customer experience, customers leaving to compatitors.

It's ridiculous how the tech industry grifters sell harmful or foolish ideas and gaslight anyone who has concerns.

Actually, the "translation" should read:

"Massive layoffs will result from this epic blunder and any employee who thinks that FY 2026 was bad clearly has no idea just how bad FY 2027 is going to get."

They don't, they have behind-the-scene agreements. And they think everything will go according to those agreements.

Thread regarding Oracle Corp. layoffs

Oracle knows OpenAI will go belly-up

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