[zappoblappo]

Oracle is in a serious pickle as the AI Winter approaches. Their financial model was predicated on that happy exponential growth curve going ever upward. But bond investors have had enough, and now that debt downgrade to one notch above junk and the bond market saying it actually is junk. The bright bulbs at Oracle must know what’s coming because every prompt I give the leading AIs says that their path to saving themselves is narrow. The first step is for them to ditch their agreements with OpenAI and resell that capacity to the hyperscalers. The second step is to put a legal and corporate firewall around their non AI business. If AI falls, Oracle would still continue on in a lesser form, supporting Oracle db etc. Meanwhile word is spreading of a reverse dispersion trade (Bloomberg article) as a growing horde of traders realizes that taking away the lunch bowl at the AI party is going to incite a panicked rush to the exists.