Oracle Layoffs Show AI Data Center Costs Reshaping Big Tech

Oracle has begun notifying employees about a new round of layoffs that could affect thousands of roles.

Shares were down 27% year to date at the time of the report as investors weighed competition from generative AI and how Oracle’s higher spending on data center infrastructure could affect cash flow.

Oracle has been increasing capital expenditures to build AI-ready data centers, and in September it said remaining performance obligations rose 359% to US$455.0 billion after an agreement with OpenAI worth more than US$300.0 billion.

🔗 Source: CNBC