https://www.cnbc.com/video/2025/11/12/oracle-and-coreweave-represent-bad-behavior-in-the-ai-buildout-says-da-davidsons-gil-luria.html
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@fk oh it gets better. If customers start moving workloads and the relevant data to other players, Oracle’s core DB business is threatened. perhaps not immediately but it is a matter of time. Oracle is trying to stay relevant. However the plans as articulated currently, shows a degree of tunnel vision.
I was never in a position to know what demand looked like for O infrastructure, but I would speculate that if you want to continue to grow your 80% margin business in the SaaS space you will need dc's and gpu's; for automation, code dev, and agents. If your vendors are c***-blocking you with their buildouts then O probably needed to take action to ensure capacity. Telling a "tall tale" about low margin capacity rental to the market to ensure you have capacity is a reasonable move even if in the near term that means volatility in the stock price. It would be a necessary plan to ensure your business was not impacted by the over-building of other vendors. As AI capabilities and AGI increase towards becoming super intelligent, you better have a horse (even a slow horse) in the race to remain relevant. This is an arms race for the long term, not a short term bet to please Wall Street. I am not a bot and I was RIF'd. I am not the fanboy here.
It says: “Renting out AI GPUs is a bad business for Oracle “
Oracle is a “canary in a coal mine “ when it comes to AI data centers/infrastructure investments.
Unlike Microsoft, Google, Amazon hyper scalers, AI data centers investments from Oracle are very questionable from profitability perspective