Thread regarding Oracle Corp. layoffs

People are blowing through their monthly budgets in a few days.

This is how it is supposed to be! When Artificial Intelligence gets this month's work done in just a few days, I can coast for the remainder of the month and don't need to burn any more tokens. Wow you people are thick.

@ah No that was fuel by Oracle not disclosing most of the rpo is from one customer that has its own chance failing.

@bz yes, I hear from family that their companies are restricting AI after the initial ‘use AI freely’ introduction. People are blowing through their monthly budgets in a few days.

What if there is a default on the RPOs? This only way this works is if the stars align just right and on time. It requires that the need for infrastructure increases at bubble rates. There has already been signs of a pull back. Companies are finding it hard to get a positive ROI from all of the AI consumption. Read the posts on this site about usage caps because of cost. Do you really believe that other companies haven't run into the same wall?.

AI needs to become far more efficient in its compute resource consumption if companies are going to be able to rely on it heavily. Basically, the price of usage need to drop dramatically. Far more efficient means it will need less resources which puts the RPO schedule at risk. If it doesn't become more efficient than companies will spend less again slowing demand and putting the RPOs at risk.

The stock is low because the markets are factoring in what they believe will be an AI reset. Oracle is way over leveraged in a way over bought market. They have no capacity to absorb any negative deviations to an extremely wishful plan.

LE and his prodigal son, CM, seem to be betting on the same principle that defined the Gold Rush: the people selling the picks and shovels often made more money than the people mining the gold.

In that sense, investing in data centers is a sensible strategy. Demand for compute infrastructure is only going to increase. O missed the cloud wave, and realistically, it doesn't appear to have the capability—or the culture—to build a truly differentiated AI product of its own.

What O describes today as "AI integration" feels more like marketing than substance. Anyone working there knows that many of these so-called AI products are simply existing offerings rebranded with AI buzzwords. The gap between the messaging and the actual technology is hard to ignore.

Another issue is the management structure. Many M4s and above have very limited hands-on involvement with AI or engineering. A significant portion of their time is spent in meetings, while the real product development is driven by IC3–IC6 engineers and M2/M3 managers who are still actively writing code, solving technical problems, and shipping products.

The organization also feels management-heavy. An M4 or M5 should ideally be responsible for a substantially larger organization—perhaps 50–60 people—rather than overseeing 10–15 employees with multiple layers of managers beneath them. Excessive management layers slow decision-making and dilute accountability without necessarily improving execution.

That said, if the data center strategy succeeds and O's stock returns to the $350 range, many employees—including me—would certainly benefit. A large portion of our compensation is tied to vested and unvested equity. Given that base salaries have historically been modest relative to total compensation, a strong stock price is often what determines whether years of work translate into meaningful financial rewards.

@af OP here. Same reason stock hit $350 when the total RPO was first announced. It's the markets! It does its own thing. Tesla's P/E is 350. 350! Anyone know what that even means? Is Tesla's current and future revenue aligned with that PE number?

Ha ha. Elaborate but good one.

You would think Wall Street has already done this calculation; so why is the stock price so low?