hackernews client

Oracle fires 21,000 employees to fund AI spending

73 pointsposted 15 hours ago

by DemiGuru

(jpost.com)

13 Comments

dmix

15 hours ago

AFAIK this article is not discussing new layoffs, this was previously discussed 3 months ago

https://news.ycombinator.com/item?id=47587935

The angle of the article is basically they did these layoffs and now also face some serious debt risks. Which was also obvious a few months ago. Oracle made a huge gamble, even more so than other big tech firms.

unaib

14 hours ago

Very good timing for this contract with the Pentagon then,at just the right amount.

https://ca.finance.yahoo.com/news/pentagon-awards-oracle-nea...

beardyw

14 hours ago

AI companies want their customers to lay off people so that when they turn up the prices to "barely profitable" they will be forced to pay up.

ecocentrik

14 hours ago

This news is a month old.

gordian-mind

14 hours ago

Requiring $7 billion in collateral, nearly half the cost of the entire $15 billion project, to insure the utility’s full capital investment in case the company walks away, is completely insane. “Existing customers should not subsidize data centers” seems like pure demagogy there.

qlte

13 hours ago

If the details in this article are correct, it’s because they need $7 billion dollars worth of power infrastructure built out for their 1GW datacenter, not an arbitrary punitive penalty.

You seem convinced it has to be demagogy but that’s a significant amount of concentrated risk for the utility on a single project that could evaporate and leave them holding the bag, forcing rate increases for existing ratepayers.

https://archive.md/voqjr

  Local utility We Energies’ “very large customer” tariff requires any data centre developer with an S&P rating below single A minus to post collateral in the form of cash or a letter of credit. The size of the collateral is determined by the value of any power plants and transmission lines built to service the data centre.