https://telecareaware.com/

Even Oracle can’t get as much money for AI as it wants. Speculation has been increasing since late last week, sparked by a report from financial analyst TD Cowen that was first reported in the financial media. At the center is Oracle’s five-year, $300 billion deal with OpenAI (ChatGPT), which will require extraordinary financing to fulfill. According to the report (not publicly available), the capital expenditure for building or leasing data centers is estimated at $156 billion. To increase this, TD Cowen predicts that the former Cerner, now Oracle Health, would need to be sold, as well as a possible reduction of 20,000 to 30,000 jobs, about 10 to 15% or more of the current workforce, saving $8 to $10 billion in cash flow.

Why doesn’t Oracle go to the markets and banks, hold out the cup to fund this capital spending, and let them fill it? US lenders appear to be increasingly reluctant to lend for additional AI data centers, while Asian lenders are willing to lend money, albeit at higher rates.