Oracle and the AI boom’s hidden debt bomb
# Oracle's AI Gamble Is Backfiring Oracle bet big on becoming a landlord for AI companies by building expensive data centers to rent computing power, which initially looked like a smart move when it signed a massive deal with OpenAI. However, the company's stock has since plummeted 43%, suggesting investors are getting nervous that AI companies might not actually need—or be able to afford—all these costly facilities, turning what looked like a safe infrastructure play into a risky bet on an unproven market.
The old adage goes that during a boom, the companies that profit most are the ones selling the picks and shovels. This January, even as consensus had largely settled around the idea that an AI bubble exists, something even Sam Altman acknowledged last August, Blackstone called investing in the “pick
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