Oracle cuts 21,000 jobs as Wisconsin OpenAI campus faces a $7B power guarantee hurdle
kimmonismus · x · 2026-07-24
Oracle has cut 21,000 jobs while facing a regulatory hurdle for its nearly 1-gigawatt Wisconsin campus tied to a $300 billion OpenAI cloud deal.
- State regulators want Oracle to guarantee more than $7 billion in power infrastructure for the project.
- Oracle’s credit rating has slipped to BBB-, below the level required for the guarantee.
- A letter of credit could cost the company over $100 million per year.
- The post argues that as Oracle strains under the buildout, SpaceX is becoming more important as a hyperscaler.
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