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Oracle (ORCL) is making some uncomfortable moves. The Austin, Texas-based technology giant is reportedly planning to cut thousands of jobs across multiple divisions. At the same time, it has scrapped a planned flagship artificial intelligence data center project in Texas. And it is redirecting that spending toward a broader buildout of cloud infrastructure for clients like OpenAI and Meta (META).
For investors, this raises a fair question: Is Oracle trimming fat to run leaner, or is it a sign that the company is straining under the weight of its AI ambitions?