Almost doesn’t matter what Google’s short term unit economics on AI are as long as their shareholders and board are OK with it. Google makes money hand over fist and can afford it. Microsoft is fine, Oracle is fine, TSMC is fine. These other shops are leveraged to the hilt, so they’ll be in a world of hurt if people stop buying, financing, or investing.
Oracle is not fine. They are borrowing money hoping to get paid back by money losing OpenAI propped up by VC funding.
No business is going to run workloads on OCI outside of ones running Oracle. They a They are a way distance fourth in cloud. I’ve been working in cloud consulting for five years including the first three directly at AWS (Professional Services). No one worried about having talking points about competing against Oracle.
Microsoft, Google and Amazon have both internal products that can benefit from inference and cloud hosting.
Oracle is going to get screwed if they build a bunch of data centers and the customers (mostly OpenAI) all declare bankruptcy.
Oracle has started creating bonds with really long maturity 40years...?