Oracle files to sell $20B in new stock, bonds to finance AI buildout

jawiggins

Previously, I thought investing in AI companies would be a good hedge against AI taking my job, but I hadn't considered the possibility that they fund the build out by issuing shares. Is there no reprieve?

dcrazy

Half of that would be in stocks, resulting in 2.5% dilution for shareholders at the current market cap. But the stock is down 8%.

Computer0

Of all the companies in the world this is one of the ones I root against the hardest. Hoping for the worst outcome on this investment.

ai_critic

Misread the title at first as "to finance AI bailout".

Tostino

I hope nothing but the worst for Oracle as a corporation...though nothing against the technical talent there.

baggachipz

I would assume it's to hire more lawyers.

proc0

Skynet finally? (Terminator movie used Oracle building as Skynet HQ, forgot which one)

flowerlad

Oracle does not have any proprietary IP that OpenAI depends on. That means Oracle is providing commodity services to OpenAI. AI hardware is advancing rapidly. If NVIDIA's next generations deliver radically more tokens per watt and per dollar, an Oracle facility designed, financed, and contracted around an older GPU generation can be overtaken before it is fully online or fully monetized. That's a big risk. And to finance this they are making deep cuts to the ERP business where Oracle does have proprietary IP.

thedougd

Broadcom is waiting to buy up the pieces.

cromka

This is the equivalent of 2007 garbage CDSes.

Qiu_Zhanxuan

A company that is purely in Denial, even doubling down at the risk of toppling the whole financial system should be placed under the financial equivalent of arrest and its leadership actually arrested. They're obviously playing with fire and it's alarming that no one's in the administration is batting an eye.

colechristensen

I'm happy to see Oracle missteps here.

seatac76

Things I hope for: - Oracle defaulting on its debt commitments. - Anti trust action into Skydance forcing a breakup. - Larry forced to cover the difference by selling family silver. - Lanai going back into the hands of the people of Hawaii. Just for the laughs and for forcing me to bear with some of the worst applications of all time.

Danox

Oracle begging couldn’t happen to a nicer company, the only thing that can be said is bubble, bubble bubble…

nchmy

hopefully their demise brings JavaScript back to the commons! https://javascript.tm

vb-8448

At this point it's a race between "how much money are left in the market" and "profitability". And both are hard to predict.

amelius

Are they going to build a lawyer AI? They have the data for it.

6thbit

> the fundraising was already outlined at an investor day last week > “This seems to be exactly what they previewed,” said Rob Oliver, senior research analyst at Baird. “So I’m not sure why the market is freaking about it.” Nothing burger?

glouwbug

Buildout or Bailout?

shrubble

Friends who worked at a telecom were told directly by Oracle salespeople that they were all-in on AI and that the software for telecoms that Oracle owns was being put into maintenance or sunset mode.