Introspective the hippie

1 ÷ 0 | 2019 Activator @ActivateZA | Illustrator and animator | I stand for liberty and justice ✊🌱

[Introspective the hippie @IntrospectiveSA]

@Eskom_SA https://t.co/wO6SzdQEL4

This is the level of loadshedding that's coming for us 🙈🤣🤣 #Eskom #LoadsheddingUpdate #Loadshedding

[NetflixSA @NetflixSA]

Izinja madoda. Back on our screen. In 1 minute lets get to know Ernest Msibi, uScarra the Sugar Hot Dog on the Hot Minute. #Umthetho

[Actor Spaces @actorspaces]

The #SpinnersSeason2 trailer is here.

Ethan’s past catches up with him in another high-octane season. Huge congratulations to the incredible South African cast and crew!

Premiering at Silwerskerm Fees on 21 August, then on Mzansi Magic from 25 October.

#Spinners #SAFilm #MzansiMagic

[Actor Spaces @actorspaces]

The official trailer for Children of Blood and Bone has arrived, bringing Tomi Adeyemi’s epic fantasy to the big screen under the direction of Gina Prince-Bythewood.

In cinemas and IMAX from 15 January 2027.

#ChildrenOfBloodAndBone #Orisha #AfricanFantasy #MovieTrailer

[Matty McTech @setupspawn]

Did you know this trick?

[Ed Zitron @edzitron]

I joined the Times Tech Report to talk about Oracle’s credit downgrade, how OpenAI poses a material threat to the future of Oracle, Larry Ellison’s wealth, and even the Paramount/WBD deal, and how OpenAI could become the Lehman Brothers of AI.
https://t.co/LlCjI3dRv8

[Shawn Chauhan @shawnchauhan1]

The clearest AI infrastructure story of the year just lost half its value in six weeks.

Oracle is down nearly 50 percent since June. Larry Ellison has lost 125 billion dollars.

S&P downgraded the credit rating over the 95 billion dollar bet on building data centers for closed AI customers.

This is what happens when your entire growth story depends on one proprietary partner's demand curve.

Concentration risk isn't a footnote. It's the whole thesis, and it just showed up on the balance sheet.
Diversified, open ecosystems don't have a single customer who can sink the stock.

Oracle just became the cautionary tale everyone will cite for the next five years.

[Introspective the hippie @IntrospectiveSA]

The first major casualty in the AI bubble perhaps?

[Vascular de Gama @cloverfund_ai]

Will their other partners take notice?

S&P Global has downgraded @Oracle's credit rating from BBB to BBB-, leaving the company just one notch above non-investment-grade, or "junk," status.

The ratings agency cited Oracle's growing exposure to @OpenAI as a key credit risk, warning that if OpenAI were unable to meet its financial commitments, Oracle could be left with costly long-term data centre leases that may be difficult to exit.

#Oracle #OpenAI #SPGlobal #CreditRating #DataCenters #ArtificialIntelligence #CloudComputing #BusinessNews #Finance #TechTrackr #TechNews

[Ricardo @Ric_RTP]

OpenAI just got OFFICIALLY flagged as a company that might not be able to pay its bills.

S&P Global Ratings just cut Oracle's long term credit rating from BBB to BBB-.

One more cut and Oracle becomes a JUNK rated company for the first time in its history.

But the reason S&P gave is what's really interesting here...

They named OpenAI as a "key credit risk" inside the report.

OpenAI is a private company. It carries no credit rating and has never been profitable.

And a ratings agency just took the risk of that company failing and wrote it directly onto the credit file of a public company held inside pension funds and bond funds all over the world.

OpenAI accounts for roughly HALF of Oracle's remaining performance obligations. That's the famous $638 billion backlog every bull points to as the reason to own the stock.

Half of the asset is the risk.

And then there's the maturity trap:

Oracle's data center leases run 15 to 19 years. Its cloud customer contracts run about 5 years. Oracle disclosed both figures in its own annual report.

So Oracle is signing 19 year obligations to serve 5 year promises made by a customer that has never earned a dollar of profit.

If OpenAI cannot pay, Oracle gets left holding data center leases it may not be able to exit, and may have to re-lease to somebody else on worse terms.

That is the entire downgrade in one sentence.

The numbers underneath:

Oracle spent roughly $55.7 billion on capital projects in fiscal 2026 and posted negative $23.7 billion in free cash flow.

S&P now expects the fiscal 2027 cash flow deficit to widen to around negative $42 billion. That is nearly DOUBLE its previous estimate, and the agency admitted it had underestimated how much Oracle would need to spend.

Oracle plans to raise up to $40 billion in fiscal 2027, including a potential $20 billion share sale that would add roughly 4.8% to its share count.

They literally cannot borrow more without triggering the next downgrade, so shareholders are being diluted to protect the bondholders.

And the funny part is that on the day of the downgrade, Oracle's stock went UP 2.65%.

But on that same day, the spread on Oracle's BONDS widened.

Equity investors looked at the $638 billion backlog and bought. Credit investors looked at the identical company and demanded to be paid more for the risk of holding it.

Credit investors are the ones whose entire job is to price what goes wrong, so they just repriced Oracle.

For context, Microsoft is rated AAA, Alphabet is AA+, and Amazon is AA. Oracle is chasing the same AI contracts from seven to nine notches further down the ladder.

The day after the downgrade, the UK named Oracle, alongside three other cloud providers, a critical third party to the British financial system. Supervision by the Bank of England begins July 13.

Oracle is the only one of those four sitting one notch above junk.

Now follow the chain:

OpenAI has never made a profit. OpenAI is half of Oracle's backlog. Oracle is one downgrade from junk. Oracle is now formally load bearing infrastructure for British banks.

The business risk of an unprofitable private startup has traveled through a corporate balance sheet and landed inside the supervisory perimeter of a central bank.

Nobody designed that. It happened one contract at a time.

And the demand IS real. Oracle's cloud infrastructure revenue grew 93% last quarter.

If this buildout works, it becomes one of the great corporate reinventions in history.

But the whole structure now rests on one question that no rating agency, no bank and no regulator can answer:

Can OpenAI pay its bills?

[Business Insider @BusinessInsider]

S&P Global downgraded Oracle's credit rating this month, citing infrastructure spending and exposure to OpenAI as risks. https://t.co/GzVa3DU6B0

[‏ً @BALUCIAGA]

she’s so proud. so proud.

[Tyla @Tyllaaaaaaa]

I want us to be able to say the biggest popstar is South African.
🥺🤞🏽💕

[‏ً @BALUCIAGA]

the biggest popstar is SOUTH AFRICAN. 🥹

[Introspective the hippie @IntrospectiveSA]

Oh to labour at one's delights ❤️

[Introspective the hippie @IntrospectiveSA]

Make yourself at home #3D #Art #Architecture #Blender

[Daily Noud @DailyNoud]

Kendrick Lamar will voice Alvin in the new ‘ALVIN AND THE CHIPMUNKS’ reboot.

In theaters in 2028.

[Jabulani Macdonald ⚡️ @Jabu_Macdonald]

‘The Polygamist’ has now officially surpassed 20 million views since its debut on Netflix and currently remains in the Top 10 most-watched non-English shows globally.

[Introspective the hippie @IntrospectiveSA]

@BuzzingPop She got that good swing though 🤣🤣🤣

[Legal Resources Centre @LRCSouthAfrica]

For more information and to access the call for submissions, read here: https://t.co/SulspytKT1

[Introspective the hippie @IntrospectiveSA]

Because I'm sure we have more than enough electricity and water to go around in this country!

[Daily Maverick @dailymaverick]

Two giant data centres get initial green light from Cape Town tribunal https://t.co/jHnIzGqe5x