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- Hacker News
- Oracle stock is up today.by pizlonator
- > Okay, let’s compare it to something “normal.” Take our Sun. Now imagine its size equals the size of the economy of, say, one of the Baltic states. On that scale, the AI bubble is a star hundreds of times bigger.
Is this meant to make it easier to understand or harder?
This seems like a complicated way of saying that the AI bubble is hundreds of times bigger than the economy of one of the Baltic states.
Is the idea of a star hundreds of times bigger than the sun more "normal" than the idea of an economy hundreds of times bigger than one of the Baltic states?
by jstanley - The bigger story in all of this is the follow on to the answer to: "how do they plan to pay for it?"
They plan to pay for most of it through excess cash flow, aka profits.
Follow on question: "they make $100s of billions per year? what did they do with all that previously?"
Answer: share buybacks, nothing (aka put it in the bank), acquisitions.
These companies make a ton of money and have a ton of margin over expenses.
by djoldman - by Kim_Bruning
- Amazing how 80+ year olds will blow up the world on their way out. Just to add a bit more to their already unfathomable wealth.by ks2048
- > Create an account to read the full story.
No, I won’t. End of the story.
by Lucasoato - The star thing is a weak awkward analogy and could've been entirely left out of this article. Why claim Oracle is the crack of doom? I don't know. It's as good as any. The rest is pretty obvious: not profitable, no PMF outside of coding, and open weight models are good enough for many practical applications, or at least the low cost of using open weight models makes more experimental applications acceptably low cost.by Zigurd
- For this reader, the author undermines their own arguments by their hectoring tone. They are extremely determined to believe that collapse is imminent, but they've made earlier posts saying the same thing, yet here we are. Maybe they are right, but markets are not rational. So I'd want to see balance sheets, SEC filings, etc not Larry Is Big Bad (which may very well be 100% true).
As best as I can understand it, DC construction is handled by REITs and SPVs, who require certain guarantees from their anchor tenants and take GPUs and possibly stock in the tenant as collateral in case things go bad. Oracle is the tenant for Stargate and maybe other DCs, and OpenAI is their customer, and OpenAI would ultimately pay Oracle rent, just like any other Oracle Cloud customer. Since OpenAI doesn't have any real cash right now, Softbank and some others are fronting them some money so that Oracle can seem more "credible" to the DC builders and in doing so command a better deal from the latter.
The assertions seem to be that all this falls apart if the DC doesn't get built on time. Oracle stock takes a beating, they no longer look so attractive to the DC builder, the builder walks away, the end. Is that about it?
by kjellsbells