Oracle is making massive investments in AI data centers, including spending billions to build a giant Texas facility powered by gas generators. Despite the significant financial risk, Oracle believes AI is the future. This strategy has, however, resulted in their first negative annual cash flow since 1990.
This approach is not just financially questionable; it also raises environmental concerns similar to issues faced by Elon Musk’s xAI with methane-powered turbines causing pollution in Memphis. Major tech companies like Google, Microsoft, and Meta have turned to nuclear power for their data centers, each with its own set of risks.
Oracle’s investment in AI is seen as a long-term growth strategy, but with the potential of the AI bubble bursting, it might result in massive financial losses. Still, if successful, it could position Oracle as a frontrunner in the AI revolution.