Investment bank TD Cowen warns that Oracle is considering cutting 20,000–30,000 jobs and selling its Cerner healthcare unit to free up $8–10 billion in cash flow, as US banks pull back from financing the company's AI data-center expansion. Oracle faces $156 billion in required capital expenditure but has already raised ~$58 billion in debt. Borrowing costs have roughly doubled since September, stalling data-center lease deals. Oracle is responding by requiring 40% upfront deposits from customers and exploring 'bring your own chip' arrangements. OpenAI has shifted near-term capacity needs to Microsoft and Amazon. Industry analysts are divided on severity, but agree enterprises should adopt multi-cloud strategies to reduce dependency on Oracle.
Sort: