30,000 Layoffs Could Soon Hit at Oracle. What Does That Mean for ORCL Stock?

One side effect of the race to build artificial intelligence platforms and data centers is the staggering cost of AI infrastructure. Data centers use hundreds of bundled graphics processing units, each costing tens of thousands of dollars. That’s why many companies have been raising their capital expenditure budgets—they need the computing power to handle greater AI workloads.

But not every company has the resources to handle the capital outlay. Oracle (ORCL) made news last year when it raised its capital expenditure budget from $15 billion to $50 billion, raising the entire amount through equity and debt.