Except we're not, in this case. Oracle is not hiding the fact that the cuts are due to rising costs and expenses, rather than actualized efficiency gains. This is in contrast to everyone else, ex. Dorsey's block, who are putting a brave face on cuts, saying it's simply due to efficiency gains from AI. The question is: why are their statements being taken at face value?
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.
Banks are getting nervous. The reaction of a psychopath would be to fire people so Ellison can pursue his AI fever dreams. Due to abnormal wealth concentration and total lack of common sense there is nothing to stop anyone should they go senile or insane.
The risk for the entire economy and the job market is immense.
With the ASICs being so efficient at inference, I’m getting the feeling even the infrastructure investments are going to be severely outdated in a couple of years..
While this article is old, there’s more and more noise that the lay offs is this month. That being said, I can’t help but wonder if the paramount deal accelerated these plans.
When there was an over buildout of fiber back in the dotcom boom, how did that turn out? Who were the winners and losers? At what timeline did new winners emerge from that bubble?
The hollowing out of middle class continues unabated. The accelerants to this conflagration are continuing mass offshoring and simultaneous layoffs in America pinning the blame on AI driven efficiencies.
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[ 3.9 ms ] story [ 52.3 ms ] threadBefore 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.
I think you are about to see what post-AGI economics really looks like and it is not good at all.
So-called "AGI" has been hijacked and it isn't what you think it is.
https://www.reuters.com/business/oracle-plans-thousands-job-...
Ellison has borrowed money against $80 billion of his shares:
https://www.reuters.com/business/oracle-plans-thousands-job-...
Banks are getting nervous. The reaction of a psychopath would be to fire people so Ellison can pursue his AI fever dreams. Due to abnormal wealth concentration and total lack of common sense there is nothing to stop anyone should they go senile or insane.
The risk for the entire economy and the job market is immense.
There will be nobody left to spend money, just increasing corporate and ultra high wealth spend. The rest will be left with food and water.
We are destroying currently valuable jobs to allocate resources to electricity and silicon, concentrating wealth into 10 companies pockets.
I don't know what comes after, but when you combine this with the Iran war it's going to be closer to economic depression.
Why? That's wasteful. The money for that should go to the shareholders, and the moocher problem will solve itself in a couple of weeks.
I don't even know what that company does. I'm sure it's valuable for a reason, just never understood what they do.
Edit: Google says they sell Database software. OK.
Sell your ORCL while you can, folks