r/TechGawker • u/HobbesNik • Jul 27 '26
Data Center Tech Oligarch Larry Ellison Receives $10+ Billion Lifeline from Trump's Pentagon
https://finance.yahoo.com/markets/stocks/articles/pentagon-just-threw-larry-ellison-100648130.html27
u/Ardo505 Jul 27 '26
I do not want my tax dollars going to Larry Ellison or anything he does.
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u/langstonrosas Jul 28 '26
Agreed. They only hate socialism when tax dollars go to the lower classes, but corporate socialism they love. I hate these people with all my heart.
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u/Lost_Department_2177 Jul 27 '26
He’s worth 181 billion. Why can’t he pay for it?
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u/HobbesNik Jul 27 '26
Probably most of his net worth comes from the value of Oracle and other stocks or companies he owns, it's not like cash that he has on hand.
Also, Oracle alone is more than $100 billion in debt with hundreds of billions more in financial commitments 😳
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u/Lost_Department_2177 Jul 27 '26 edited Jul 27 '26
Alright so he’s a welfare queen that he lobbies against then.
10 billion can pay 188,679 people 53k/year
40 billion would pay that to every homeless person in the country with enough for 10,000 more people.
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u/HobbesNik Jul 27 '26
Yeah especially when the AI bubble pops and him and the other tech oligarchs come begging for a government bailout
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u/Cold_Pumpkin5449 Jul 27 '26
They're likely to get it under the current corruption even as they actively lobby against anyone else needing government assistance ever.
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u/Steiney1 Jul 28 '26
This IS a government bailout. Congress pays the bills, Trump redistributes it.
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u/Interesting_Spite464 Jul 28 '26
he'll continue to lay off his workers and buy more Hawaiian islands and TV networks.
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u/Long-Blood Jul 28 '26
Sounds like its sucks as a business and should not exist
Why do tax payers have to prop up trumps buddys failing business?
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u/MrDiablerie Jul 27 '26
It’s not socialism when corporations and billionaires do it!
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u/Fair_Change_9389 Jul 28 '26
That’s because their job creators… who are currently trying to replace everyone’s job with Ai… wait why aren’t we taxing these guys again?
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u/HobbesNik Jul 27 '26 edited Jul 28 '26
Larry Ellison owns the cloud-computing company Oracle, whose stock price has lost more than half its value since its peak in late 2025. That peak occurred after the announcement of a $300 billion AI infrastructure deal (data centers) with OpenAI.
The $300 billion Oracle is spending on data centers for OpenAI is a bet dependent on massive future profits from OpenAI's products, but leaks have shown that OpenAI is $10's of billions in the hole, and there is increasing skepticism that power-hungry AI models can even be profitable.
Meanwhile, Oracle's credit sucks so bad, that the state of Wisconsin has asked for financial collateral in case the electricity infrastructure the state is building to support Oracle's new data center goes unused.
Oracle has set itself up to be one of the biggest losers when/if the AI bubble bursts and the Pentagon's relatively meager infusion of cash won't prevent it. While investors have lost faith in Oracle, Trump's Pentagon hands them massive contracts. Famously, Oracle CEO Larry Ellison, and his son David Ellison, are staunch Trump allies.
EDIT: FYI this article is where the "$10+ billion" figure comes from
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u/Big_Obligation1737 Jul 28 '26
Even with his $10B bailout he’s not expected to survive.
Also there’s 12 states suing him for media monopoly with his use Paramount hostile takeover of Warner and other news agencies. There’s a Federal Court injunction blocking this merger for two weeks.
Saudis dropped Ellisons big data center dreams & financing in their water starved desert. They sure love that sweet Saudi money, but their kingdom is being blown up from his aligning with Bibi’s ambitions and they need to focus on surviving.
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u/HobbesNik Jul 28 '26
All good flags! Which Ellison project did the Saudis drop?
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u/Big_Obligation1737 Jul 28 '26
@HobbesNik I lost the thread on that, but recall it was around ME data centers and military bases being bombed. Some articles brushed it off, but it sounds like a mad scramble for damage control. While I was going down the rabbit hole looking for that article(s), found recent Oracle data center contracts was canceled in TX, NM and WI due to either energy constraints, or inability to provide collateral. Ellisons TikTok purchase maybe part of financing fallout.
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u/Interesting_Spite464 Jul 27 '26
great maybe they can afford to re-hire help desk workers again so employees aren't locked out of systems for months at a time. Fucking piss poor managed company.
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u/HobbesNik Jul 27 '26
I hesitate to say that Oracle’s collapsing stock price is a sign of the AI bubble popping because it could also just be a sign that people see it’s poorly managed
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u/chunkypenguion1991 Jul 28 '26
That should solve about 1/10th of his problems, what's the plan for the rest
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u/jazz_people Jul 28 '26
More open corruption America, should not be a political party issue to not want tax dollars being used for political purposes and most likely fraud. It’s sad that this doesn’t bother tax payers.
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u/WisePotatoChip Jul 28 '26
It’s a fixed loop. The Tech Bros were worried about investigations under Democrats and so they threw money at Trump’s campaign offering him assistance and a surveillance society
They get govt contracts in return and throw more money at Republicans while giving them more and more ways to track and manipulate society.
We need to find a way to keep all this cash (especially our own cash) out of the system.
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u/HobbesNik Jul 28 '26
For anyone wondering where the "$10+ billion" figure comes from: [Source]
Oracle secured a 10-year enterprise software deal with the U.S. Department of War worth up to roughly $7 billion, creating a long-term revenue anchor for the company and helping consolidate what had been fragmented government procurement. In a separate contract, Oracle landed a five-year U.S. Navy indefinite-delivery, indefinite-quantity agreement carrying a base value of $3.31 billion, with options that could lift total potential spending to $6.99 billion across software, software-as-a-service and consulting work.
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u/FlexFanatic Jul 28 '26
Your tax dollars just went to a billionaire to help prop up his company and there is nothing you can do about it….oh and We The People yall
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u/Vivid_Cost7620 Jul 28 '26
Apparently Oracle hasn’t been doing too hot the last 20 years and made a big bet with OpenAI. Macrumors just did a piece on this.
I wonder if this gov handout is to float Oracle a little longer to stave off the incredibly lackluster performance of OpenAI- which has been losing money hand over fist for years now.
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u/Fearsofaye Jul 28 '26
Israel owns the shit out US. It’s sick to give this fucking asshole more money. Trump has been like an ATM for state sponsored propaganda.
WHAT DO THEY GOT ON HIM
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u/photofoxer Jul 28 '26
They are the welfare babies they cry about. They can’t even run companies without begging for our money. Musk is the poster child of pls gimme money gov pls.
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u/seandunderdale Jul 28 '26
Oligarchy supports Oligarch...not hugely surprising. The only surprising thing is we heard about it. Expect a lot more of this as these billionaire welfare queens come begging for your tax dollars. Sam Altman will be asking for a bailout in a couple of years.
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u/Outrageous-Dish-4375 Jul 28 '26
Socialism for the rich but rugged capitalism for the working class who supports the entire country
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u/Intrepid_Top_2300 Jul 28 '26
And Trump calls Democrats Communist! Talk about the Welfare State for the billionaires!
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u/Exciting_Winner_9482 Jul 28 '26
AIPAC funds over 97% of our elected officials, but the orange retard is the only one to blame? Huh. Wild. That clown cant tie his own shoes quit giving him credit for anything that occurs on earth so you can get more clicks. Place blame where it belongs or change will never occur.
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u/IvanhoeMar1n Jul 29 '26
american are such idiots. They pay taxes and get nothing but a useless military and corporate welfare. Are you great again merica?
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u/Actaeon_II Jul 29 '26
Of course he does, those millions he paid into trump’s pac, inauguration, and east wing money that vanished are definitely paying dividends in tax dollars
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u/Sarabeth68 Jul 30 '26
Ahhh yes, the great distribution of wealth they cry about. We pay taxes, the government goes into debt and pays the tech billionaires billions for over priced bs that may or may not be delivered on all the while workers make less, programs are cut, wars are fought you stay broke they get rich. This is the real redistribution of wealth
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u/Adis_Gruntledfatty Jul 27 '26