this is bad reporting. microsoft's share of openai's cumulative loss over the lifetime of their investment is 11.5b. the microsoft share of openai's loss in the quarter was 4.1b, implying an 8b loss for openai itself assuming microsoft recognized 49% of openai losses per their ownership stake exiting the quarter. there may be some one time items that skew this, if not this is ain't good
Is anyone _not_ short Oracle? The downside risk for them is that they’ll lose a deal worth 10x their annual revenues.
Their potential upside is that OpenAI (a company with lifetime revenues of ~$10bn) have committed to a $300bn lease, if Oracle manages build a fleet of datacenters faster than any company in history.
If you’re not short, you definitely shouldn’t be long. They’re the only one of the big tech companies I could reasonably see going to $0 if the bubble pops.
With the executive branch now picking "national champion" companies (as in Intel deal), I feel like there's a big new short risk to consider. Would the current administration allow Oracle to go to zero?
