2 months ago
- The global AI race has become a costly corporate competition, with tech giants expected to spend about $600 billion on AI infrastructure by 2026, risking cash flows and pressuring companies to prove profits.
- Oracle took a major bet by signing a $300 billion AI computing contract with OpenAI, leading to severe cash strain, aggressive cost-cutting, and a workforce reduction of about 21,000 employees (13%) by fiscal 2026.
- Oracle's multi-billion-dollar data center project in Port Washington, Wisconsin faces financial hurdles due to collateral requirements of over $7 billion after its credit rating dropped to BBB-, sparking a court petition against the high costs.