Oracle is among several AI giants that trimmed its workforce significantly to rapidly fund the development of AI infrastructure. Tech giants are expected to collectively spend around $600 billion on AI infrastructure buildout in 2026. Oracle continues to retain its position as a primary provider of computing power after entering a contract with OpenAI to supply $300 billion in compute over five years, starting in 2027.
However, building the data centres is resulting in a severe cash squeeze. The company took extreme efficiency measures, including downsizing its workforce by 21,000 by the end of fiscal year 2026 to 141,000 workers from 162,000 amid AI integration to free up cash flow.
