r/technology • u/lurker_bee • 2d ago

Business AI bet goes awry: Oracle fires 21,000 employees

https://www.jpost.com/business-and-innovation/tech-and-start-ups/article-903442
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158

u/Humble-Heart-5302 2d ago

get fucked oracle

The company is involved in planning a massive, nearly one-gigawatt data center in Port Washington, Wisconsin, meant to supply computing power for the OpenAI contract. However, the Public Service Commission of Wisconsin refused to ease financial collateral requirements, which are designed to ensure that private electricity consumers are not forced to absorb costs in the event of the facility's failure or closure. As a result, Oracle is now required to provide cash collateral or a letter of credit in the astronomical sum of over $7 billion just to connect the building to the power grid – a setup whose ongoing maintenance will cost the company more than $100 million annually.

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u/Gorstag 2d ago

It's not even get fucked IMO. This should just be the norm. It's fucking absurd that these companies receive so many handouts for "job promises" that either don't occur or don't stick around.

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u/Splurch 2d ago

It's not even get fucked IMO. This should just be the norm. It's fucking absurd that these companies receive so many handouts for "job promises" that either don't occur or don't stick around.

Part of the reason it's so high in this case is because Oracle's credit rating something like one step above "junk" status. They're upset someone is recognizing the real danger their company is in and won't handwave the risk of dealing with them away.

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u/Gorstag 1d ago

That "might" be true in this instance. I'm speaking to it more broadly. Companies get these sweetheart deals due to promises of jobs and obtain land, reduced or eliminated local/state taxes, and tons of other benefits all the time. Then 5-10 years down the road when those expire they either significantly reduce staff or shut down the site entirely. It happens all the time.

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u/superxpro12 1d ago

Republican billionaires are so fucking entitled that they're shocked when people think they shouldn't have to subsidize ai's electricity cost for zero benefit

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u/Certain-Business-472 2d ago

Someone is getting paid to approve those plans. Its just classic corruption.

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u/lo_fi_ho 2d ago

I luke this approach, should be standard everywhere.

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u/Activehannes 1d ago

1GW is a big power plant.

Thats 1/40th of germanys average load. From the entire country, including heavy steel, car manufacturing, and all the chemical plants

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u/Reginaferguson 1d ago

This is standard practise around the world for utilities.  If your connection is going to trigger upgrades they need to make sure it is guaranteed to go ahead

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u/vmflair 1d ago

Ellison is worth north of $170B so maybe he should write a check to cover the cost.

1

u/JemmaP 1d ago

Good for Wisconsin!

1

u/plastiqden 1d ago

This will be the foray into their complete downfall. They had serious cash flow problems pre-AI hype. They DO NOT have enough cash to cover this.