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Lese-Ansicht

AI slowdown calls justified but collapse of bubble may be more immediate threat | Heather Stewart

Scale of debt issuance being used to fund the hectic pace of the datacentre rollout by tech firms is a worry

Warnings about powerful and uncontrolled AI have dominated the headlines this past week. But even amid the omens of apocalypse, it is still worth asking if the entire AI-industrial complex is sailing towards a financial iceberg.

It will hardly be our most pressing concern if the bots are poised to take over the world, but a collapse of the AI bubble would have repercussions far beyond the US.

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© Photograph: Pavlo Gonchar/SOPA Images/Shutterstock

© Photograph: Pavlo Gonchar/SOPA Images/Shutterstock

© Photograph: Pavlo Gonchar/SOPA Images/Shutterstock

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Mark Ruffalo fires back at Paramount Skydance after it accuses him of using ‘antisemitic tropes’

Actor says highlighting role of Oracle CEO Larry Ellison in media company’s merger with Warner Bros Discovery has been ‘dishonestly framed as being anti-Israel’

Mark Ruffalo has fired back at Paramount Skydance after the media company accused him of invoking “antisemitic tropes” in his criticism of its $111bn merger with Warner Bros Discovery (WBD).

The actor, who has long been outspoken against Israel’s military conduct in Gaza and for the rights of Palestinians, shared a statement on social media on Friday in which he highlighted the links between Paramount Skydance, run by CEO David Ellison, and Oracle, the technology company run by Ellison’s father, Larry.

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© Photograph: Michael Tran/AFP/Getty Images

© Photograph: Michael Tran/AFP/Getty Images

© Photograph: Michael Tran/AFP/Getty Images

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US tech firm Oracle cuts thousands of jobs as it steps up AI spending

Company chaired by Trump ally Larry Ellison seeks to reassure investors that bet on AI infrastructure will pay off

Oracle is cutting thousands of jobs as the US technology company seeks to reassure investors that its bet on AI infrastructure will pay off.

The $420bn firm, headquartered in Austin, Texas, started making employees redundant on Tuesday, with thousands of Oracle’s 160,000-strong workforce expected to leave.

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© Photograph: Tom Brenner/Reuters

© Photograph: Tom Brenner/Reuters

© Photograph: Tom Brenner/Reuters

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What does the disappearance of a $100bn deal mean for the AI economy?

Apparent collapse of Nvidia–OpenAI tie-up raises questions about circular funding and who will bear the cost of AI’s expansion

Did the circular AI economy just wobble? Last week it was reported that a much-discussed $100bn deal – announced last September – between Nvidia and OpenAI might not be happening at all.

This was a circular arrangement through which the chipmaker would supply the ChatGPT developer with huge sums of money that would largely go towards the purchase of its own chips.

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© Photograph: Ann Wang/Reuters

© Photograph: Ann Wang/Reuters

© Photograph: Ann Wang/Reuters

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TikTok announces it has finalized deal to establish US entity, sidestepping ban

Majority US-owned venture includes Larry Ellison’s Oracle, private-equity group Silver Lake and Abu Dhabi’s MGX

TikTok announced on Thursday it had closed a deal to establish a new US entity, allowing it to sidestep a ban and ending a long legal battle.

The deal finalized by ByteDance, TikTok’s Chinese owner, sets up a majority American-owned venture, with investors including Larry Ellison’s Oracle, the private-equity group Silver Lake and Abu Dhabi’s MGX owning 80.1% of the new entity, while ByteDance will own 19.9%.

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© Photograph: Matt Slocum/AP

© Photograph: Matt Slocum/AP

© Photograph: Matt Slocum/AP

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