For this reader, the author undermines their own arguments by their hectoring tone. They are extremely determined to believe that collapse is imminent, but they've made earlier posts saying the same thing, yet here we are. Maybe they are right, but markets are not rational. So I'd want to see balance sheets, SEC filings, etc not Larry Is Big Bad (which may very well be 100% true).
As best as I can understand it, DC construction is handled by REITs and SPVs, who require certain guarantees from their anchor tenants and take GPUs and possibly stock in the tenant as collateral in case things go bad. Oracle is the tenant for Stargate and maybe other DCs, and OpenAI is their customer, and OpenAI would ultimately pay Oracle rent, just like any other Oracle Cloud customer. Since OpenAI doesn't have any real cash right now, Softbank and some others are fronting them some money so that Oracle can seem more "credible" to the DC builders and in doing so command a better deal from the latter.
The assertions seem to be that all this falls apart if the DC doesn't get built on time. Oracle stock takes a beating, they no longer look so attractive to the DC builder, the builder walks away, the end. Is that about it?
As best as I can understand it, DC construction is handled by REITs and SPVs, who require certain guarantees from their anchor tenants and take GPUs and possibly stock in the tenant as collateral in case things go bad. Oracle is the tenant for Stargate and maybe other DCs, and OpenAI is their customer, and OpenAI would ultimately pay Oracle rent, just like any other Oracle Cloud customer. Since OpenAI doesn't have any real cash right now, Softbank and some others are fronting them some money so that Oracle can seem more "credible" to the DC builders and in doing so command a better deal from the latter.
The assertions seem to be that all this falls apart if the DC doesn't get built on time. Oracle stock takes a beating, they no longer look so attractive to the DC builder, the builder walks away, the end. Is that about it?