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Greetings and salutations, Traveler.

I'm your host, Ed Zittron, and this is your Better Offline monologue for the week.

Better Offline.

Blood is running through the stock market as everybody realizes at once shit I've been saying since 2024. The generative AI costs too much, loses everybody money and doesn't have the growth

potential to make any of this shit worth it. Yet this has been a week for the more sophisticated haters, with Oracle stock

plummeting on the news that it had to raise another $45 to $55 billion to fund data centers for

open AI, which timed poorly with a story running that Nvidia was no longer doing its $100 billion

investment in Open AI, something you all know was the case because it was on

this podcast months ago and has been multiple times since. To catch you up, last September, Oracle announced

a $300 billion five-year-long deal to provide compute to Open AI, powered by 4.5 gigawatts of compute

capacity that at the time and at this time did not and

does not exist. As far as I can tell, only 200 megawatts of Stargate Abilene, a project that's been

a work in progress since 2024, appears to be complete, and to my knowledge as well, there's only like

200 megawatts of power out there. They need a lot more than that. That's meant to be a 1.2 gigawatt

center. Not great. Now, several other data center projects are allegedly in the works too. Stargate

Shackleford, Texas and Wisconsin, Stargate New Mexico, and theoretically at least Stargate Michigan,

through Blue Al, who invested in basically every Stargate

project and pulled out of Michigan due to financing conditions souring.

Oracle had previously raised $56 billion in bonds and debt, with $38 billion of that,

specifically earmarked for Shackleford and Wisconsin.

...