Oracle could soon see 30,000 layoffs. What does this mean for ORCL stock?

A side effect of the race to build artificial intelligence platforms and data centers is the enormous cost of AI infrastructure. Data centers use hundreds of bundled graphics processing units, each costing tens of thousands of dollars. This is why many companies have increased their capital expenditure budgets – they need the computing power to handle larger AI workloads.

But not every company has the necessary resources to meet the capital expenditure. oracle (ORCL) made headlines last year when it increased its capital expenditure budget from $15 billion to $50 billion, raising the entire amount through equity and debt.

But now analysts are raising concerns about Oracle, whose stock has fallen nearly 58% since its peak in September. A $300 billion deal Providing cloud infrastructure for OpenAI means…