"Oracle's investments in AI may prove costly. Investment bank TD Cowen says the company hopes to reduce costs to finance its ambitious AI infrastructure build. To that end, it has already accumulated $58 billion in debt in two months. A round of layoffs affecting 30,000 employees is possible, while even a spin-off of Oracle Health, formerly Cerner, is being considered. Since September, Oracle has lost half of its market value, which currently stands at just under $400 billion."
"According to investment bank TD Cowen, the layoffs could free up $8 to $10 billion for Oracle. The company is also considering selling Oracle Health, which consists of Cerner. Oracle acquired that company in 2022 for $28.3 billion. The question is whether this will provide the financial basis for the investments Oracle plans to make. TD Cowen estimates that this will amount to around $156 billion."
Oracle accumulated $58 billion in debt in two months to support an ambitious AI infrastructure build. The company faces potential layoffs affecting up to 30,000 employees and is considering selling or spinning off Oracle Health (formerly Cerner), acquired for $28.3 billion. Market value has fallen by half since September to just under $400 billion. TD Cowen estimates investment needs near $156 billion and suggests layoffs could free $8–10 billion. Several US banks withdrew financing for data center projects, deals stalled, and private operators cannot secure capital to build required facilities, creating a rollout bottleneck.
Read at Techzine Global
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