Over the past few weeks, several US banks have pulled off from lending to Oracle for expanding its AI data centres, as per a report.
  • orca@orcas.enjoying.yachts
    28·
    1 day ago

    The AI bubble is getting ready to burst.

    The desperation here lmao

    As part of its strategy, Oracle has begun requiring clients to help build infrastructure, per the CIO report, citing TD Cowen. This effectively translates to asking clients to shoulder part of the cost, according to the investment bank.

    • Gamma@beehaw.orgEnglish
      9·
      1 day ago

      It is also exploring an arrangement called “bring your own chip” (BYOC), where new customers will be required to supply their own hardware, shifting capital requirements off Oracle’s books.

      Does anyone else do this? I could see a smaller data center needing it, but hardware management is something I thought was a perk of going with a huge company

      • P03 Locke@lemmy.dbzer0.comEnglish
        9·
        1 day ago

        I don’t understand why Oracle or the reporter tried to invent a new term for this. This is literally “colocation”, a term so ubiquitous that the industry typically shortens it to “colo”.

      • Midnitte@beehaw.orgEnglish
        4·
        1 day ago

        I think they usually just refer to this as on premise management? Like, its your server but an outside company manages everything for you

            • definitemaybe@lemmy.ca
              3·
              18 hours ago

              I didn’t look into it in detail, but might this be more specific to RAM/video cards? With costs of those components skyrocketing, whoever is committing to buying those is going to have a hard time forecasting.

              So maybe they’re offloading that risk? Kinda like a futures contract, but for computer chips.