Oracle is Already Underwater On Its 'Astonishing' $300B OpenAI Deal (ft.com) 29
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.
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.
Sounds like a better deal to me (Score:1)
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)
- ex employee
Don’t celebrate yet (Score:5, Informative)
Their share price is still double what it was last year.
Ellison could wring a buck out of roadkill.
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Ellison could wring a buck out of roadkill.
Not if the Secretary of Health eats it first!
Re:Don't celebrate yet (Score:2)
Ellison could wring a buck out of roadkill.
Not if the Secretary of Health eats it first!
Na, he just leaves it [npr.org].
Won't somebody please think of the Ellisons?! (Score:5, Funny)
Whatever will they do with only possibly tens of billions rather than hundreds of billions?!
MAGAfy legacy media (Score:2)
Ozero [google.com] sure is nice this time of year. I wonder when CBS will play Swan Lake?
Good. (Score:2)
couldn't have happened to two worse companies.
Not a surprise knowing someone does not know AI (Score:5, Insightful)
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.
Re:Not a surprise knowing someone does not know AI (Score:4, Funny)
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Okay, technically it's possible - but those Kryten hardware accessories are prohibitively expensive for most businesses.
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Doing that sounds like an extreme case of medical malpractice? Maybe criminally negligent homicide as a follow-up to that?
Oracle, IT's demon incarnate. (Score:5, Insightful)
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.
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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
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Yep. Enterprises whose demise would basically benefit everybody. Essentially a cancer on society.
Eyeballs, eyeballs, eyeballs. (Score:3)
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?
Palantir, Palantir, Palantir (Score:1)
Does Oracle ... (Score:2)
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)
Underwater? (Score:2)
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.
hell with oracle (Score:2)
Stock market value is not an Oracle expense. (Score:3)
Ha Ha (Score:2)
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.
Very misleading title (Score:2)
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)
Apparently, none of the execs at Oracle have watched this video