oracle

That Oracle speaks out on the soap opera between NVIDIA and OpenAI is a bad sign. That it will not have benefits until 2029, too

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Oracle counted in a tweet that the agreement between NVIDIA and OpenAI has “zero impact” on your financial relationships with the company that owns ChatGPT. This is more complicated than it seems, because the AI ​​business could end up collapsing if a large company like NVIDIA or Oracle shows even a hint of doubt towards OpenAI. The latest statements by Jensen Huang, CEO of NVIDIA, have made the market nervous, although Oracle’s path is not very encouraging either. Why is it relevant? Oracle just announced that will raise between 45,000 and 50,000 million of dollars this year through debt and equity issuance to build cloud infrastructure for its large AI clients. Among them, OpenAI stands out with a contract of 300,000 million of dollars for five years that starts in 2028. The problem is that OpenAI is not profitable right now, and Oracle needs OpenAI to raise capital so that it can pay it. It is a circular financing circuit where everyone depends on everyone Keep signing checks. The numbers don’t add up yet. The contract with OpenAI involves about $60 billion annually starting in 2028. To fulfill it, Oracle must buy approximately 400,000 chips NVIDIA’s GB200, with an estimated cost of $40 billion just for its flagship data center in Abilene, Texas. Meanwhile, OpenAI’s total revenue in 2025 was around $13 billion, according to Bloomberg. Oracle is betting its bottom line that a company that currently burns more cash than it generates can pay bills equal to five times its current annual revenue. The alarm signals. In January, investors accused Oracle of hiding the need for more debt to finance its AI infrastructure, according to Reuters. Oracle’s debt-to-equity ratio is at 6x, and credit default swaps reached levels not seen since the 2008 financial crisis in December, according to point Bloomberg. In addition to all this obstacle, Oracle’s action has fallen 50% from its September peak, when it announced precisely the agreement with OpenAIerasing some $460 billion in market capitalization. ANDnegative n until 2029. Developing data centers for AI has pushed Oracle’s free cash flow into negative territory, where it is expected to remain until 2030, according to data compiled by Bloomberg. Jefferies esteem that the company will need to raise more funds in 2027 and subsequent years, since cash flow will not return to positive until 2029. Oracle plans to raise 50 billion: half through equity, with convertible preferred securities and a share sale program of up to 20 billion, and the other half through a single bond issue in early 2026. Between the lines. What really worries the market is the structure of mutual dependence. NVIDIA funds OpenAI. OpenAI pays Oracle. Oracle buys chips from NVIDIA. Everyone’s income growth depends on everyone else continuing to write checks. When Jensen Huang, CEO of NVIDIA, declared to journalists that the 100 billion agreement with OpenAI “was never a commitment” and that they would invest “step by step”, Oracle had to come out with that tweet to calm the waters. And that tweet is precisely the type of communication that worries investors. Cover image | IEEE Awards, Hartmann Studios, Wikimedia Commons In Xataka | The CEO of Airbnb is clear that there are companies with too many meetings: his trick is to follow Jony Ive’s philosophy

Oracle signed a 300 billion agreement with OpenAI. Two months later it has lost 315,000 million in the stock market

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Since Oracle announced its $300 billion deal with OpenAI On September 10, its shares have lost $315 billion in market capitalization, as they have stated since Financial Times. The technology company He has bet everything on a single card: Become the premier infrastructure provider for the world’s most valuable AI lab. Investors are not convinced. The most expensive bet in its history. Oracle has tied its future to OpenAI in an unprecedented way in the technology industry. According to estimates At Jefferies, 58% of its future order book comes from a single customer: OpenAI. To put it in perspective, Microsoft has just 39% concentration with its largest customer, and Amazon 16%. Oracle has gotten into a mess and its business diversification has become a critical dependency on OpenAI. The plan is ambitious but risky. Oracle’s strategy is to reach $166 billion in cloud computing revenue by 2030, according to counted the company last month. To achieve this, its investment budget in the current fiscal year ending in May amounts to $35 billion. The analysts wait that this annual expenditure will stabilize around 80,000 million in 2029. But here’s the problem: Starting in 2027, most of that revenue would come from OpenAI, according to the calculations from RBC Capital Markets. That is, Oracle is not just building massive infrastructure, it is building massive infrastructure for a single tenant that has yet to prove its long-term commercial viability. The numbers don’t add up yet. Oracle’s net debt already stands at 2.5 times its ebitda (earnings before interest, taxes, depreciation and amortization), more than double what it was in 2021, and is expected to almost double again by 2030. Its free cash flow is also expected to remain negative for five consecutive years, according to the forecasts collected by Bloomberg. The company is financing with debt a gigantic server farm with the hope that OpenAI will generate enough revenue to justify the investment. Meanwhile, as has shared Financial Times, investors are so restless that the cost of insuring against a potential Oracle default is at a three-year high. The contagion effect of OpenAI. Oracle is not the only company that has suffered after announcing agreements with OpenAI. Broadcom and Amazon too have seen their shares fallwhile NVIDIA has barely moved since its investment agreement in September. A few months ago, any type of association with OpenAI caused prices to rise, considering himself the King Midas of AI. The most notable case was AMD’s in Octoberwhen its shares rose 24% after announcing a chip deal that included company warrants. That halo effect seems to have completely faded. Between the lines. The initial theory was that OpenAI was in a frantic race to catch up. general artificial intelligence (AGI) and that Oracle was the only company capable of scaling the necessary computing capacity at the required speed. Oracle promised the lowest upfront costs and the fastest path to revenue generation because it acted as a data center tenant, not an owner. Now investors are sending the signal that partnering with OpenAI is no longer a guarantee of success. The alternative reality is less rosy: Oracle doesn’t have as much operating profit as its competitors to burn on R&D, so it’s betting everything to keep its only big customer in exchange for a promissory note. Amazon, Microsoft and Meta can afford to spend between 70,000 and 130,000 million a year in infrastructure. Oracle is juggling financials to keep pace. And now what. Oracle has until mid-2026 to prove that your Abilene data center in Texas, with capacity for more than 400,000 GPUs and 1.4 gigawatts of power, can generate the promised returns. Meanwhile, the market has spoken and is awaiting evidence that this partnership will bear the promised fruits. Cover image | Oracle and OpenAI In Xataka | As if there weren’t enough AI companies, Jeff Bezos has just returned from the shadows to build another one, according to the NYT

The war between China and the United States has uncovered a technological “mercenary”: Oracle

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While giants like Microsoft, Google or Meta The headlines monopolize Regarding the AI ​​and the rest of its technologies, Oracle has been silently positioned as the perfect intermediary in the technological pulse between Washington and Beijing. After The acquisition of Sun Microsystems In 2010 to be in charge of Java, a key piece for the operation of multiple technologies in our electronic devices, Oracle’s power was increasing. Now his record It expands thanks to the AI already its involvement in Tiktok’s agreement. THE BUSINESS OF NOT CHOOSE BANDO. Oracle has built its strategy in being the neutral provider that does not directly compete with its biggest customers. While Amazon Web Services or Microsoft Azure can generate friction because of their direct competition, Oracle offers infrastructure without the threat of removing the business being present. This position allows you to work with both Openai and any rival, becoming the “mercenary” that everyone needs and nobody fears. His role in the rescue of Tiktok. The White House has confirmed that Oracle will be key in the agreement to maintain operational Tiktok in the United States. The company will be in charge of security of the American version of the application, managing the data of the users from centers located in American territory. Bytedance will retain 20% of the property, but Oracle will control the critical infrastructure that reassures legislators concerned with national security. More power, less prominence. While the big technological struggle to capture the attention of the final consumer, Oracle has chosen to remain in the shadow. His Cloud infrastructure business It does not have the glamor of social networks or AI attendees, but it has become essential. And the numbers accompany, because the company He has triggered his income Futures 359%, reaching 455,000 million dollars of capitalization thanks to contracts such as Openai worth 300,000 million to materialize the famous’PROJECT STARGATE‘. The perfect intermediary strategy. Oracle has maintained a position of neutrality in recent years, which has allowed him to benefit from geopolitical tensions without taking part publicly. When the United States needs a Chinese alternative to technological infrastructure, Oracle is there. When the companies of AI They need computational capacity Without depending on direct competitors, Oracle is also available. A network of contacts has been worked from which he has taken a lot of profit. The risks of success. This strategy is not exempt from dangers. The growing dependence of great contracts such as Openai turns Oracle into vulnerable to single -client. In addition, fulfilling such ambitious commitments will require significant indebtedness and an unprecedented infrastructure expansion. Its debt ratio on equity of 427% already overcomes that of competitors such as Microsoft, which is 32.7%, according to data of S&P Global Market Intelligence. Cover image | Oracle In Xataka | Great door or nursing: “circular financing” between Nvidia and OpenAi can be the genius of the century … or the collapse

There is a reason why Oracle has become the new beautiful AI girl. That reason is called Project Stargate

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OpenAI has reached an agreement with Oracle for which it has pledged to hire computing capacity worth $ 300,000 million within five years. The data come from The Wall Street Journalwhere sources close to that agreement cite. The implications are huge. Why is it important. Yesterday Oracle shot in the stock market after announcing that he had had good results, but above all Future income would increase by 359% up to 455,000 million dollars. Although there were suspicions about what could have happened to that extraordinary growth, we now know what happened. And what happened is the Stargate project. The numbers do not fit. The agreement will begin in 2027 and priori seems very risky, especially since OpenAi has no money. Its annual income will be about 10,000 million dollars in 2025, but will have to pay for 60,000 million annually to Oracle to comply with the agreement. Not only that: Oracle will also depend on receiving that income, because now a large part of them will come as a single client. As they point out in WSJ, Oracle is likely to have to borrow to buy the chips necessary to create those data centers that OpenAi will use as part of the agreement. 4.5 GW of calculation power. The contract will make OpenAi access a 4.5 GW computing capacity. It is a way to measure the energy consumption of the center or data centers that will be used to serve the firm’s AI models. The figure is huge, and to put it in perspective, it represents almost 40% of the entire current computing power of Europe, which amounts to 11.9 GW According to IEA. The Stargate Resurge project. The announcement of the Project Stargate, which raises an investment of 500,000 million dollars in data centers for AI, returns to the present. The accounts seem not to leave Despite the recent idyll Between Openai and Softbank, but in July the company of Sam Altman announced that his company and Oracle They had arrived to “an agreement to develop 4.5 additional capacity of capacity in Stargate data centers in the United States.” More bubble indications. The agreement between Openai and Oracle is absolutely huge and confirms that disturbing tendency of the extraordinary expense in data centers that we have been living for months. That figures dance states with the fact that for now all the companies of AI are burning money as if there were no tomorrow And they are far from profitable. That has caused alarms and alerts to be triggered on a IA bubble potential. Microsoft begins to go to the background. The agreement confirms that progressive separation Between Openai and Microsoft, which after the multimillionaire investment of 2023 had become the great technological partner of OpenAI. Each of these companies this now working in their respective plans b. The contract between Openai and Oracle makes that separation of roads once clearer. Doubts about Oracle. This agreement has turned the company into the new beautiful AI girl, but it is not clear if you can fulfill a commitment as ambitious as the one that arises with this contract. To begin with, Oracle has many more debts regarding the money in cash, and its debt ratio on heritage (Debt to Equitiy) is 427%, a very high figure. Microsoft in comparison has 32.7% according to S&P Global Market Intelligence data cited In WSJ. A huge challenge. In addition Microsoft had a cash flow of 136,000 million dollars for the fiscal year that ended this June, while its Capex was 88,000 million dollars. Meanwhile, Oracle had a cash flow of 21.5 billion dollars and its Capex was $ 27.4 billion. Its capex in the coming years will have to shoot, and it is evident that the company has a huge challenge with this project. Image | Oracle In Xataka | If the question is whether there is an AI bubble, Sam Altman has just answered. One with which he is winning

Openai and Oracle prepare a brutal data center with 2 million chips for ia

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The plan ‘Stargate’ It is the great bet of the government led by Donald Trump to keep the US at the head of development in artificial intelligence (AI). When this project was made public on January 22, it hit the economic endowment that would make it possible: nothing less than 500,000 million dollars. This money will leave the coffers of the Japanese investment group SoftBank; of those of OpenAI, the creators of Chatgpt; of those of Oracle, and, finally, it will also be provided by the investment firm Emiraratí MGX. These companies will support the construction during the next four years of an advanced network of data centers that will house the high performance computing infrastructure necessary to sustain US leadership in the AI field. The spearhead of these facilities is already being built in Texas (USA), in a town called Abilene. And it is colossal. In fact, this first data center of the ‘Stargate’ project will bring together, According to OpenAimore than two million chips for ia. 4.5 GW Dan for a lot When the US government announced to Bombo y S pay this plan left a great question open: how did he plan to solve the supply of electricity required by the new facilities? Large data centers for AI consume a lot of electricity, which has caused Some technology have opted for investing in nuclear centrals to guarantee the supply of electricity that these facilities require. Oracle began to install the first ‘racks’ with NVIDIA B200 platform servers in June At the moment this question is not completely resolved. And it is not because the ‘Stargate’ infrastructure should be completely ready before President Trump’s current mandate expires, and a new nuclear power plant can hardly come into operation in four years. Even so, Openai and Oracle have formalized A few hours ago they have reached an agreement to build the necessary infrastructure to Deliver additional 4.5 GW to your data centers. Interestingly, SoftBank does not participate in the financing of this expansion, although, as I mentioned a few lines above, it does in the ‘Stargate’ project. According to OpenAia part of the gigantic Abilene data center is already in operation. In fact, Oracle began installing the first racks With platform servers B200 of NVIDIA In June. It is surprising that in just six months a part of this installation is already active, but it is important that we do not overlook that the Abilene data center seeks to demonstrate that the ‘Stargate’ plan is viable within the deadline that those responsible have promised. Anyway, in this equation there is another unknown that also has a lot to say: China. “We hope that China significantly increase its investments in AI and semiconductors in response to the US domain in AI,” CBM consultancy analysts foresee. It makes sense. These two great powers world supremacy are being disputedso it is understandable that each significant step that give one of the two Receive a more or less overwhelming answer from the other. We can be sure that 2025 will be an even more agitated year than 2024 in the geopolitical and technological fields, so we will be attentive to the steps that US and China will surely give. Image | Christina Morillo More information | OpenAI In Xataka | Huawei attacks Nvidia positions in China: he wants to have dominant hardware in inference processes in AI

is to use AI as an oracle instead of as a tool

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A century ago, being illiterate was not knowing how to read or write. In developed countries That problem today is residual. But another type of illiteracy is emerging. More subtle, more difficult to detect, with more gray and perhaps equally determining: Not knowing how to interact with AI. This new literacy does not know how to program or understand how models work. It is something more basic: know how to ask good questions, know how to read the answers, and above all, know how to distrust. Not in a paranoid way, but with criteria. Distinguish when we are using AI … and when AI is using us. It is the difference between being a passive AI user – some who swallows without chewing – and using it as a lever for thought, as an extension of our analysis capacity. Because, well used, it can be that: a cognitive multiplier. There you play A huge difference: There are those who use these systems as if they were a vitaminated google or a estroid calculator. He throws a question, copy the answer and voila. Other people – even more – are learning to talk with them. To stretch its limits. To generate ideas that neither the machine alone nor them could have produced. The key is not the tool, it is how you use it. And for that it is necessary literacy in AI. The thing goes beyond who does what with Chatgpt. Systems like Deep Research They are beginning to automate tasks that, until recently, were the point of entry to many professions. Reports, summaries, preliminary analysis … just that type of work that served to train, to understand the trade from within. If you give that to a model, how do you learn to think like an expert? That is The black hole that is coming in many companies. If you automate the formative tasks, how are you going to train the new ones? If we do not redesign well – and fast – how the experience is transmitted, we could have entire generations without a real basis. People with titles but without criteria. And not only that: this new illiteracy can be hereditary. Like parents who did not read they did not raise reading children, those who do not know how to use these tools will hardly teach to use them. Learning will remain in the hands of school … or algorithm. The paradoxical is that All this disguises himself very well. Someone can generate a brilliant report, a perfect presentation, a seemingly solid analysis … without deep understanding, much less. It is enough that you know how to ask for it well. The risk is not just that mediocrity is imposed. Is that nobody realizes. As Antonio Ortiz has been notifyingthe real problem is not that AI thinks for us. It is that, little by little, we stop thinking about ourselves and our atrophy begins. That is why the true digital literacy of the future will not be technical. It will be ethical, critical, cognitive. Know when to ask the AI ​​to think about you. And, above all, when to say no. In Xataka | Bill Gates has a favorite book about AI for a reason: predicts better than anyone what will happen to jobs Outstanding image | Xataka

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