Oracle may cut up to 30,000 jobs and sell its medical division to fund AI infrastructure
Oracle could cut up to 30,000 jobs and sell its medical technology unit Cerner to fund AI data centers, according to a statement from analysts at TD Cowen.
Oracle could cut up to 30,000 jobs and sell its medical technology unit Cerner to fund AI data centers, according to a statement from analysts at TD Cowen.
A report by the American investment bank TD Cowen notes that investors are interested in how Oracle will finance its data center construction program, necessary to fulfill a five-year contract with OpenAI worth $300 billion, The Register writes .
The bank estimates that the OpenAI deal alone will require $156 billion in capital expenditures. Last year, when the company raised its 2026 capital expenditure forecast by $15 billion — to a total of $50 billion — it spooked some investors.
This year, “both shareholders and creditors began to question Oracle’s ability to finance this infrastructure rollout.
TD Cowen estimated that expanding OpenAI alone — Oracle is also building for Meta and Nvidia for a total of $523 billion — would require about $3 billion in GPUs and other IT equipment, implying a capital investment of $156 billion.
Additionally, US banks have reportedly refused to lend to Oracle-related data center projects, while private operators leasing Oracle space have also had difficulty obtaining financing, making the leasing option within the infrastructure development plan virtually impossible.
According to TD Cowen, Oracle is “evaluating several options to address its financing needs.” It is considering cutting 20,000 to 30,000 jobs to free up $8 billion to $10 billion, as well as selling assets, including a possible sale of Cerner, a medical technology company that Oracle acquired for $28.3 billion in June 2022. The company is also considering vendor financing.
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The Oracle founder still managed to briefly stay on the podium as the richest person in the world, pushing Elon Musk out of the top spot.
The Oracle founder still managed to briefly stay on the podium as the richest person in the world, pushing Elon Musk out of the top spot.
Oracle is making cuts, likely due to increased spending on AI
Oracle is making cuts, likely due to increased spending on AI
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