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Oracle

Oracle is Already Underwater On Its 'Astonishing' $300B OpenAI Deal (ft.com) 29

Posted by msmash from the tough-luck dept.
An anonymous reader shares a report: It's too soon to be talking about the Curse of OpenAI, but we're going to anyway. Since September 10, when Oracle announced a $300 billion deal with the chatbot maker, its stock has shed $315 billion in market value.

OK, yes, it's a gross simplification to just look at market cap. But equivalents to Oracle shares are little changed over the same period (Nasdaq Composite, Microsoft, Dow Jones US Software Index), so the $15 billion loss figure [figure updated with stock price] is not entirely wrong. Oracle's "astonishing quarter" really has cost it nearly as much as one General Motors, or two Kraft Heinz.
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Oracle is Already Underwater On Its 'Astonishing' $300B OpenAI Deal More

Oracle is Already Underwater On Its 'Astonishing' $300B OpenAI Deal

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  • Sounds like a better deal to me (Score:1)

    by Anonymous Coward

    I'll take an Escalade and two bottles of ketchup over using ChatGPT again.

  • Couldn't have happen to a more deserving company (Score:4, Informative)

    by Anonymous Coward on Tuesday November 18, 2025 @03:21PM (#65803351)
    They may rot in hell

    - ex employee

  • Don’t celebrate yet (Score:5, Informative)

    by labnet ( 457441 ) on Tuesday November 18, 2025 @03:27PM (#65803363)

    Their share price is still double what it was last year.
    Ellison could wring a buck out of roadkill.

  • Won't somebody please think of the Ellisons?! (Score:5, Funny)

    by jacks smirking reven ( 909048 ) on Tuesday November 18, 2025 @03:31PM (#65803365)

    Whatever will they do with only possibly tens of billions rather than hundreds of billions?!

  • couldn't have happened to two worse companies.

  • Not a surprise knowing someone does not know AI (Score:5, Insightful)

    by rahmrh ( 939610 ) on Tuesday November 18, 2025 @03:35PM (#65803379)

    Not a surprise they are underwater.

    I have personally heard(first hand, I retired so no longer work there) multiple people in the company(including at least one of the CEOs and Larry) hype AI as being able to compress and store medical images at lower resolution because when you use AI superzoom to enlarge/up-scale the lower resolution compressed image it can recreate the "original" detail and can be used for diagnoses.

    Given they think AI is magic and they seem to believe Hollywood superzoom exists they will pay anything for that unobtainium, that is not ever going to be possible to ever do (under ANY conditions) because it for any given 4 pixels you attempt to zoom into up there are mathematically a huge number of (3x3,4x4) solutions and no way to determine which solution was/is true.

  • Oracle, IT's demon incarnate. (Score:5, Insightful)

    by Kisai ( 213879 ) on Tuesday November 18, 2025 @03:36PM (#65803383)

    Between Oracle and Cisco, both of them are exceptionally awful.

    Oracle because they basically bought out open source software (MySQL, Sun/Open/LibreOffice) or acquired (eg Java) technology to try and extinguish competition for it's own products. And then did nothing but let it's own products and the stuff they acquired rot. Like I can name even more products that clients moved away from because Oracle bought them and then tried to shove them down to their own worse proprietary products.

    Cisco has done exactly the same thing, acquired Linksys because of the open source routers they were selling, and then let it rot. Cisco has done this hundreds of times.

    Look good god, every time I see Oracle show up in news I secretly hope the company is going be broken up or go bankrupt.

    • Cisco has done exactly the same thing, acquired Linksys because of the open source routers they were selling, and then let it rot. Cisco has done this hundreds of times.

      In fairness...

      1.) Cisco is far less litigation happy than Oracle is. Not saying they don't have attorneys on retainer, but Oracle is frequently referred to as a law firm with a software sales division - very different tiers.

      2.) Cisco owned Linksys for a while, sure, but they haven't owned it in nearly 15 years - Cisco sold it over to Belkin back in 2013, who in turn sold it to Foxconn around 2018.

      3.) Cisco may have discontinued selling routers running Linux out of the box, but they never did any signed-boot

    • Re: (Score:2)

      by gweihir ( 88907 )

      Yep. Enterprises whose demise would basically benefit everybody. Essentially a cancer on society.

  • Eyeballs, eyeballs, eyeballs. (Score:3)

    by FrankSchwab ( 675585 ) on Tuesday November 18, 2025 @03:48PM (#65803401) Journal

    Nice of them to look at Sept 10 as the starting point. The share price has dropped over $105 / share since then. You know how much Oracle has lost since Sept 9, one day previous? $20 a share.

    So there was a big pop due to the announcement, and life has gone back to normal since then.

    Is this what Slashdot has sunk to?

    • Many of us prefer a reference to Sauron at the pinnacle of power. If your keystone argument is Bad Santa or Weird Al you are relegated to be middling at best. Gradient descent is a topical prominence, not a philistine's plaything. The brilliant post was welcoming and nurturing.

  • ... have its own in-house AI program? Like Google has Gemini and Microsoft has Copilot and (to a degree) OpenAI.

    It seems to me that Oracle is just some rich sucker that got invited to a back-room poker game. Like Warren Buffett said: If you're playing poker and after 15 minutes you don't know who the patsy is, you are the patsy.

    AI is just a shakedown.

  • a locally rational market somehow (Score:3)

    by aRTeeNLCH ( 6256058 ) on Tuesday November 18, 2025 @04:07PM (#65803425)
    Nope, this article doesn't make sense. As the saying goes, markets can remain irrational longer than you can remain solvent. And the market is still very irrational about AI, it would be silly to assume it is suddenly rational when it comes to Oracle.

  • Oracle stock is up almost 19 percent on the year still and it looks like most of the drop is a correction after the stock jumped after the announcement? Not that I think Oracle is a good company to buy, but this report seems a little off from what the stock is doing.

  • they can take their surveillance-state-teet-sucking-predatory-intellectual-property-model and shove it up their ass.

  • Stock market value is not an Oracle expense. (Score:3)

    by Fly Swatter ( 30498 ) on Tuesday November 18, 2025 @04:54PM (#65803527) Homepage
    This is just a dumb comparison. Oracle is up 32% year to date. Oddly no mention of that, another short term gambler whining they lost money in the short term. Too bad, learn to research before gambling. Oh right that would be actual investing at that point.

  • Sounds like somebody all butt hurt after they bought at the very fucking top.

    Imma help you out. You need to get out of openAI and NVidia. Right now. Thank me later.

  • Oracle is not "underwater" on this deal. The may eventually not be able to derive value from the deal based on their COGS, but all of this is very different than the stock price....all AI is being hit atm.

  • Wardley Mapping explains Oracle downturn (Score:3)

    by laughingskeptic ( 1004414 ) on Tuesday November 18, 2025 @08:17PM (#65803813)
    Providing cloud compute services is a commodity business. Oracle's willingness to transform itself into the broker of a high-volume low-profit commodity is the opposite of what a real tech company would so. And they are borrowing hundreds of billions of dollars to do this.

    Apparently, none of the execs at Oracle have watched this video ... they should. https://www.youtube.com/watch?... [youtube.com]

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