Rebel Capitalist News Leaked AI REPORT From Oracle Shocks The Market
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Oct 8, 2025 A leaked Oracle AI report raises eyebrows as it reveals disappointing gross margins and a $100M quarterly loss. The discussion likens today's AI fervor to late-90s market bubbles, questioning if we’re in a similar cycle. The conversation digs into the sustainability of the AI ecosystem, heavily reliant on OpenAI spending. Analysts downplay bubble risks, but George warns of the potential fallout on mega-cap stocks like NVIDIA. Ultimately, the dialogue leaves investors pondering the transformative nature of AI against a backdrop of risky valuations.
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Market May Be In An AI Bubble
- George Gammon argues the market is in an AI-driven bubble and comparisons to 1998–2000 are apt.
- He warns buying S&P 500 as a retirement plan ignores long multi-year drawdowns and valuation risk.
Quick Paper Gains And Losses At Oracle
- George recounts Oracle's CEO and Larry Ellison gaining huge paper wealth after earnings, then quickly losing value.
- He uses that volatility as a bubble example where fortunes can reverse in seconds.
Leaked Oracle Report Undermines Profit Hopes
- A leaked Oracle report suggested AI-related gross margins were only ~14% and some AI rentals lost money.
- Gammon says this undermines the high-profit expectations baked into AI-related stocks.