Mastodawn

This week Microsoft stock tanked -12% on revelations that 45% of its Azure customer backlog is OpenAI.

Oracle is now struggling to get loans to pay for its data center buildout to meet its $300B deal with OpenAI. They may need layoffs to come up with the money.

The underlying theme being bankers don’t believe OpenAI will have the money to pay these bills and it’s pulling down companies doing business with it.

https://www.cio.com/article/4125103/oracle-may-slash-up-to-30000-jobs-to-fund-ai-data-center-expansion-as-us-banks-retreat.html

Oracle may slash up to 30,000 jobs to fund AI data-center expansion as US banks retreat

Oracle is considering workforce cuts and selling Cerner to alleviate financial pressure, warns investment bank TD Cowen.

CIO

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iwein

@carnage4life there we go, I guess.

The us stock market being wiped out is the only reasonable outcome from here, don't you think?

I was surprised it lasted this long, so I guess I'm missing some tricks being used to prop it up.

Btw, EU pension fund already starting to sell us bonds, and the $ is going down too, so it's not going to be contained to wall st.

Perfect storm...The 2008 crash got nothing on this one, if you ask me.

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Gaëtan Perrault Feb 2

@iwein @carnage4life

I think a general US market + economy crash has been in the works for a long time. I've been telling my friends for years that we were not going to make it out of the 2020s without something major happening. Like, 1929 major.

AI + Financial Engineering + Trump management is probably going to tip it over the edge. It won't necessarily look like the 1929 crash because the finances are just more complex, but I think it's going to feel like that crash for a lot of people. Sadly.