Oracle is facing significant financial pressures, with investment banker TD Cowen suggesting the company may cut as many as 30,000 jobs and potentially sell its health tech unit, Cerner. This drastic move is aimed at addressing challenges linked to financing its ambitious AI infrastructure build-out, notably a $300 billion contract with OpenAI. The projected capital spending for the OpenAI deal alone is estimated at $156 billion, raising concerns among equity and debt investors about Oracle's ability to secure necessary funds. TD Cowen's research highlights that Oracle's credit risk has increased, as evidenced by a tripling of its credit default swap (CDS) spreads at the end of the previous year. Investors are wary, leading to US banks pulling back from lending for Oracle's datacenter projects. Meanwhile, Asian banks are reportedly less concerned about Oracle’s financial health. Amid these uncertainties, Oracle has begun requiring 40% upfront deposits from customers for its services, signaling its tightening cash flow. To navigate its financing issues, Oracle is exploring several options. These include reducing its workforce significantly, which could free up $8 billion to $10 billion in cash flow. Selling Cerner, which Oracle acquired for $28.3 billion in 2022, is also on the table. The company is under pressure to find solutions as it continues to ramp up its AI investments and meet the demands of its large contracts.