By Erik van Klinken
Publication Date: 2026-02-06 13:53:00
Oracle’s investments in AI could prove costly. Investment bank TD Cowen says the company hopes to reduce the cost of funding its ambitious AI infrastructure buildout. To this end, the country has already accumulated $58 billion in debt in two months. A round of layoffs of 30,000 employees is possible, while a spinoff of Oracle Health, formerly Cerner, is even being considered.
Since September, Oracle has lost half of its market value, which is currently just under $400 billion. In addition to other negative aspects related to AI, the company faces significant financial headwinds. It said in a press release that the alleged dispute between Nvidia and OpenAI has “no impact” on the relationship between Oracle and OpenAI, and that it is “very confident” that CEO Sam Altman’s company can meet its obligations.
The layoffs could free up $8 billion to $10 billion for Oracle, according to investment bank TD Cowen. The company is also considering…
