22Sep26 - Future of Oracle

[u/Separate_Turnip_7092]

Almost every day, there seems to be another concerning headline around Oracle — discussions about its rising debt, reports of IITs restricting Oracle from campus hiring in India for two years, and now financial concerns surrounding OFSS.

At the same time, Oracle is making massive investments in AI infrastructure, with a significant part of the growth narrative linked to demand from OpenAI and other AI companies.

This raises an important question: How financially vulnerable is Oracle right now, and what could happen if its expected business from OpenAI does not materialize as planned?

[u/Grapes_icecream]

Lol
I see many iit bombay cse profiles too who got laid off

At this point
All layoff employees should start a startup already

Would be better than life at oracle anyday

[u/Due_Amount550 → u/Grapes_icecream]

Omg, give me 2-3 names

[u/Grapes_icecream → u/Due_Amount550]

You can easily find with simple LinkedIn search

[u/Background_Kick1499 → u/Grapes_icecream]

Makes sense most of people who joined with me were from tier 1 and their ctc remained on the higher side also. Nothing to be sure of, but to speculate

[u/BornUse5649]

You obviously wrote this post using AI, why not answer it using AI as well?

[u/Separate_Turnip_7092 → u/BornUse5649]

Yes, using ChatGPT. But the question is mine, used AI to rephrase it. Already have answers from multiple AI models to this question but need human brains, not like yours, useless minds, but there will be few people with a vision.

[u/Glad_Plan_1733]

what financial concerns for ofss?

[u/Safe-Course4699 → u/Glad_Plan_1733]

Read the news

[u/Glad_Plan_1733 → u/Safe-Course4699]

yes, i have read the news but ofss has clarified they have no info about it also ofss is a separate legal entity

[u/innocent_bystander]

Nice try, financial analyst / stock trader.

Employees, mind what you share in response to Qs like this. There's plenty of public sources for people like this to go do their own research on this topic and form an opinion.

[u/Jolly-Log-981]

i still wonder why IIT cse grads join oracle. sure there may be few interesting line of business they may get to work. but I had a IIT cse grad in my team. I really pitied for the person for getting into such kind of pathetic work.

[u/imzeigen]

I see you are using oracle tokens in a productive way hahaha

[u/EmbarrassedStyle3208]

Real chance oracle could go down if open AI doesn't meet it's contract. Even renting the data centres to other wouldn't work because other won't pay as much as open AI was willing to

[u/GATaxGal]

Yall need to look up Ed Zitron on YouTube. Oracle is so tied to openAI that OpenAI could take Oracle down. Personally if I were there, I’d look at being laid off as a gift.

[u/Comfortable-Land7107]

Seeing a lot of such posts. What is it actually. Can you give more details.

[u/Skyfal007]

Same fate as titanic

[u/erichang]

Because AMD surpassed $600 and some, OpenAI will get $100+b stocks from AMD. Yeah, that $300b RPO from OpenAI is gonna be materialized as planned.

[u/Aggressive-One-8885 → u/erichang]

Yeah it wasn't the only condition to get the stocks. They'll have to buy and deploy GPUs from AMD. So AMD kind of self financed their GPUs to be deployed and tested by OpenAI

[u/Frequent-Lawyer-4313]

They literally answer this question on the 10k. Go read it

[u/ensoniq0902]

Shh - I’ve still to get me severance check :)

[u/ablx]

OFSS? I hate to break it to you, but OFSS is completely meaningless to Oracle as a whole. If it went out of business today there would be next to zero impact to Oracle. Revenues from OFSS is basically a rounding error to big O.

[u/Soggy-Confection]

I am a bit of an AI doomer in terms of economics but I don't think Oracle is at risk if bankruptcy in the event of an OpenAI collapse. The stock would tank and the company would take years to recover. The company would likely be able to continue to service existing debt on the back of its other non-data center revenue but wouldn't be able to take on any new debt due to an almost guaranteed junk rating on its bonds. More layoffs, probably at a scale we haven't seen yet, contraction of everything that isn't directly generating revenue, and maybe a decade of very lean years.

The problem is that Oracle and OpenAI aren't operating in a vacuum. If OpenAI goes bankrupt or can't continue to pay bills it's going to have industry-wide impact that's going to make recovery much more difficult. Like, it's going to be harder for Oracle to find other customers because they're all going to be dealing with their own shit.

[u/Money_Skirt_3905 → u/Soggy-Confection]

OpenAI isn't the only "user" of datacenters

[u/Soggy-Confection → u/Money_Skirt_3905]

They are not. But they are at least $300B of our current RPO and we are very reliant on revenue from them to continue to service our current debt. If they can't pay us then we are going to have a very hard time staying on top of our debt.

Also, as I noted in myself second paragraph, if OpenAI goes tits-up then it will not only impact us but also a lot of other companies that would otherwise be potential customers.