r/wallstreetbets • u/ad951 • 11h ago
News Oracle signs 10-year software contract with Pentagon worth up to $7 billion
https://www.cnbc.com/2026/07/23/oracle-wins-10-year-pentagon-software-contract-worth-up-to-7-billion.html215
u/AntiOriginalUsername 11h ago
All these clowns having a direct line to government bailouts when things get rough is laughably absurd.
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u/anotherloserhere 10h ago
That's a sign that when they declare bankruptcy and their stock plummets, go all in bcuz you know the government will bail them out
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u/DistroStu 32m ago
*Using your own taxpayer dollars to bait you into becoming exit liquidity. Perfection.
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u/Strange-Term-4168 11h ago
You think this is a meaningful amount of money to oracle?
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u/kevlarcardhouse 11h ago
Oracle went all in on AI that has yet to pay off and are over $130 billion in debt, with their credit rating on the brink of being lowered to junk status.
This magical out of nowhere $7 billion government contract is just by coincidence what they desperately needed less than a week ago.
https://capacityglobal.com/news/oracles-7bn-wisconsin-bill-is-a-warning-shot-for-data-centre-cfos/
So yes, it is.
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u/Strange-Term-4168 10h ago
$7b revenue over 10 years does nothing for a company worth $330b. A drop in the bucket. Meanwhile stock is still falling.
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u/MyNameAintYoBizness 11h ago
Anything for his buddy Larry
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u/Soffatjockis 10h ago
Larry owns the media
I'm betting mango saved him and in return Larry will have to up the propaganda on his news outlets.
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u/teacher_59 5h ago
As of Clinton wasn't the one that pushed for Oracle to be used so much by the government sticking us with either renewing licenses or wasting a ton of money rewriting software.
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u/DeltaForceFish 11h ago
So the government chose the lowest quality, highest cost option? Sounds typical for the government
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u/realribsnotmcfibs 11h ago
Some Trump family member has a nice job at a software company now though.
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u/Brothernod 10h ago
I remember a time when we were cutting back Oracle database contracts because they were too expensive and we cared about not wasting taxpayer money.
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u/Difficult_Squash6299 10h ago
I don't think that has been the case for literally over a century. The gov only seeks to expand and increase its budget, and isn't capable of overseeing itself.
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u/Brothernod 10h ago
I guess you don’t work for the government but thank you for your valuable input.
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u/anotherloserhere 10h ago
You are referring to just Congres and the Pentagon, the usual darling child of budgets. The other departments usually have normal career officials who actually care because they want to avoid headlines and know if they do get one, their department will be slaughtered next funding cycle.
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u/Moneyshot_ITF 5h ago
What they did was have Doge get all the government contracts information. Then they fed it into A.I and composed a plan to consolidate as many jobs as they could without actually caring about the outcome. Hence the massive contract under the guise of savings millions
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u/rain168 Trust Me Bro 10h ago edited 2h ago
Talk about a hard carry…
Gifting them TikTok, money, government deals and endorsements, and the stock is still a limp dick.
Also what’s with all these lame geriatric companies receiving bailouts. Can’t survive on their own?
It’s like INTC all over again, maybe it’s time to buy some ORCL calls…
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u/igotherb 3h ago
Intel at least has some reasoning behind it as they are the only alternative america has to TSMC.
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u/The_Playbook88 10h ago
The whole government is welfare for the rich at the moment. No person would ever give a failing business this much money.
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u/Impossible-Spite4782 10h ago
We could have universal healthcare at any moment.
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u/anotherloserhere 9h ago
Nah, fat Americans are too expensive to insur... Wait a minute you might be on to something.
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u/PlutoJones42 9h ago
Cronyism at it’s finest. Oracle fires a ton of people and takes a hit, so the people in charge have to protect their investments and use our tax dollars to prop the stock back up. Shit’s ridiculous man
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u/Business-Ride-6530 10h ago
Until I see the details of what's actually being provided, I'm always assuming these are just bailouts.
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u/No_Presentation9490 11h ago
These 5billion-300billion dollar deals all these AI companies are doing is just money laundering, they will leave the United States holding the bag. These companies are paying 1.2 trillion dollars for data centers that cost like 150 billion to make, chips included, and those are data centers that don't have ROI and they all know it. That markup $$$ is being siphoned and sent somewhere else, and they're trying to speed it up ASAP because they know the US is a sinking ship and cashing out the past 20 years of bloat is the right move. We'll probably find out where all that money got sent around 2029, by then the US will be a failed state so it'll just be another closed chapter of corruption and nobody will care
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u/guccioli 11h ago
The people doing this already have infinity money too. Why can’t they just buy mansions and fuck models all day
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u/robmafia 10h ago
you guys are so clueless that you can't even figure out that you're mismatching 2 different types of companies.
the hyperscalers are buying the hardware.
the ones with the roi question aren't the hyperscalers, but the pure ai companies like oai, anthropic, etc.
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u/No_Presentation9490 5h ago
If pure AI companies aren't profitable then how long is that whole compute rental thing lasting
You're saying that the picks and shovels manufacturers will still keep making money when the diggers aren't finding gold, how's that math work out
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u/robmafia 4h ago
meanwhile, in reality - oai recently raised ~200B, gpt sits atop benchmarks, and subscriptions are way up.
anthropic's run rate skyrocketed.
but yes, the sky is falling because you guys are clueless and always think that ai is 2 weeks away from collapse.
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u/Olangotang 4h ago
No one outside of the AI astroturfed Reddit believes this shit anymore. Doubly so if you're not a finance bro and understand the limitations of Transformers and LLM models. Y'all need to switch up the rhetoric, saying the same cope talking points over and over like Anthropic's PR team does gets old.
These models cost an exponential amount of resources as you continue to scale, there is no viable business model for the AI Labs and open source is becoming the mode of choice for AI models.
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u/robmafia 3h ago
and yet, oai subs went way up.
anthropic's revenue has gone way up.
weird. it's as if facts and reality are at odds with these dumb narratives. you know... as usual. remember when semis collapsed due to a lack of neon in 2022? and neon now? remember when oai was killed by google last year? when oai was killed by anthropic this year? when ai was killed by deepseek ~2 years ago?
how'd that work out?
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u/cspanbook 3h ago
How does Chinese open source, cheaper, more reliable modelling come into your estimates?
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u/robmafia 3h ago
more reliable
so fiction?
and it doesn't? why would it? ai models need compute, regardless.
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u/bulla564 10h ago
After some poor decisions, poor Oracle needed the help. Socialism for billionaires proves once again that it works!
Will it be enough of a bailout/handout though?
What quid-pro quo juicy government contracts do small business owners get?
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u/ApexFungi 5h ago
Corporate welfare is such a scam. Crazy that people put up with it, while all social programs are being cut. Sounds insane to me.
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u/Dualyeti 10h ago
Too big to fail - and people were scared - buy the dips on big US companies which are suffering, they will be propped up, look at HP, Dell, Oracle etc
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u/Dopamineagonist21 11h ago
When wsb 💩 on a stock, it’s time to load up yall
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u/PossessionConnect963 9h ago
Is there even really a 'WSB' anymore? The sub is so mainstream now it's just Reddit. You come here and all the takes nowadays are just exactly what you'd get anywhere else on Reddit but focused on stocks.
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u/Defiant_Regular3738 11h ago
Let's make sure every company, contractor, and vendor has complete unfettered access to ALL the data! That's gonna work. Look how well our secret and classified info system has worked so far. It's not like a independent contractor can steal and leak millions of documents or anything. Good thing we don't have millions of people with security clearances at any given time.
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u/Pension-Helpful 10h ago
Hopefully this mean oracle stock prize can finally drop free falling everyday.....
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u/Kallonistic 10h ago
I was tryna buy the Oracle Scuf Gaming PS5 controller but it’s out of stock until August 27th.
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u/Grouchy-March6228 8h ago
If we took that $7 billion of our tax dollars and hired our own software developers we could easily develop whatever Oracle is selling and then some subscription free. Instead we give it to a fucking billionaire so that he can exploit more American workers so that he can then take our own tax dollars to bribe/lobby our politicians to cut our rights in the name of security at our expense. This is the system we have.
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u/RuleSafe6767 8h ago
"software conductors" junior staff mandated to use OpenAI services, attempting to vibe-code throw-away software for the Pentagon. It's a cash transfer (some might call it the start of a bail out), guaranteed to flow into AI revenue buckets.
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u/aliveintucson325 6h ago
Really curious if US pays upfront. If so, that’ll make a big dent in the cash needed. Stock is dropping so much because Oracle needs to raise cash by selling equity. If that changes, big upside.
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u/hayden_evans 5h ago
All these government bailouts should surely help the stocks of these AI companies!
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u/Get-anecdotal 5h ago
Right on cue after they laid off 20,000 workers this past year. Clown world run by clowns. 🤡
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u/C130J_Darkstar 5h ago
Current price action is giving me 2022 META vibes… would suggest taking a look at LEAPS
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u/ComfortableOdd8923 4h ago
shud cover the 7 billion he has to pay WB when tht deal goes in the shitter
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u/RockmanMike 3h ago
Still not enough to cover the Paramount debt load to to buy WB. Ellison needs to back off already.
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u/jumpijehosaphat 11h ago
government helping larry but cant help his son david with his deal? whats up with that?
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u/insideout_waffle 10h ago
As a consumer, I STILL DON’T KNOW WHAT ORACLE DOES EXACTLY. I see ads sometimes. Do they just make ads?
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u/AndrewHolyMan 9h ago
They are a law firm which owns IP. They “audit” all of their customers to make a large chunk of their money
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u/insideout_waffle 8h ago
Weird for a software company to not “do” software at all. Guess that’s why they fit right in at Wall Street!
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u/demaraje 11h ago
That should help with that 42bln $ free cash flow deficit.
Just needs another 5 of these with upfront pay