Oracle’s Last Move Has Got Everyone Talking About An AI Top Signal

ChatGPT, Should I Short AI?

Like the pharaoh’s architects imprisoned in the very tomb they helped build, thousands of workers at Oracle are now being replaced by AI.

But this wasn’t all by design as Larry Ellison’s tech company may have overreached. Now Larry’s scaling back his data center expansion in Abilene, Texas, and downscaling his cloud computing division.

For AI ride-or-dies, it’s a worrying sign when the flagship adjusts course amid a cash crunch. But it’s not the only marker of an AI-induced economic downturn. Take a look below for the three top signals that the AI bubble might be finally bursting.

3. Amazon Blames AI For Outages

“Folks, as you likely know, the availability of the site and related infrastructure has not been good recently,” read an email briefing to workers. And a “contributing factor,” was “novel GenAI usage for which best practices and safeguards are not yet fully established.”

Does that mean Amazon’s turning its back on AI? Hell no, the company has doubled down on its commitment, firing 30,000 workers and demanding 80% of devs to use AI at least once a week.

So expect more outages in the near fut–

2. AI Infrastructure Is Trillions Of Dollars Behind Schedule

As Jensen Huang puts it, “We have only just begun this buildout,” Huang wrote. “We are a few hundred billion dollars into it. Trillions of dollars of infrastructure still need to be built.”

Bear in mind that tech firms have already invested $700 billion in AI expansion. For reference that’s larger than the GDP of Sweden, Israel, Argentina, more than the value of Disney, Nike, and Target combined, and, adjusted for inflation, enough to send humans to the moon twice over.

And still that’s not enough? Yeah, expect a squeeze very soon.

1. AI Might Become Nationalised

We’ve already seen the very public spat between the Pentagon, Anthropic and OpenAI and given the value the military and the government see in AI tech, some believe it’s only a matter of time before the government just starts taking what they want from the industry.

So can the AI industry survive a crash crunch, infrastructure malfunctions, delayed expansion and a potential government carving up?

Well, truth is it probably has to. Given how intertwined AI now is with the global economy, an AI bubble pop is simply not an option.

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