Top analyst says Oracle’s ‘irresponsible’ AI bet is different from ‘healthy’ demand from Microsoft and Google: a ‘bad deal’ with ‘very low margins’ – Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

A well-known technology analyst has sharply criticized Oracle Corp.‘S (NYSE:ORCL) The high-profile AI strategy is described as “bad behavior” and an “irresponsible investment” that is based on speculative demand, in contrast to the “sound” and established customer-focused AI developments Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN)And Alphabet Inc.‘S (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

Checkout ORCL’s share price can be found here.

ORCL has a “poor business” with “very low margins”

Gil LuriaHead of Technology Research at DA Davidson, speaking to CNBCargued that Oracle is “borrowing to provide capacity for startups,” a risky move.

He compared this directly to his “Big Tech” competitors who “have all the customers, are all cash” and are building data centers to meet demand that are “already sold three years in advance.”

Luria’s harshest criticism was directed at the economics of Oracle’s new AI business, which he described as a “bad business with very…”