Oracle stock is currently down 22% since the beginning of the year. The company has been spending heavily on data centers, and it recently became one of the major owners and security partners for TikTok’s U.S. operations.
Ellison has also used his wealth to back his son David’s acquisition of Warner Bros., which is currently being contested in court.
Not just spending heavily on data centers, but speculative spending on data centers. They are creating far more capacity than they have demand for. Nvidia is getting paid, but Oracle is going to be left holding the bag, especially as this idle hardware ages.