nerd

30 Nov 2025

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Morgan Stanley Warns Oracle Credit Protection Nearing Record High

A gauge of risk on Oracle debt "reached a three-year high in November," reports Bloomberg. "And things are only going to get worse in 2026 unless the database giant is able to assuage investor anxiety about a massive artificial intelligence spending spree, according to Morgan Stanley." A funding gap, swelling balance sheet and obsolescence risk are just some of the hazards Oracle is facing, according to Lindsay Tyler and David Hamburger, credit analysts at the brokerage. The cost of insuring Oracle's debt against default over the next five years rose to 1.25 percentage point a year on Tuesday, according to ICE Data Services. The price on the five-year credit default swaps is at risk of toppling a record set in 2008 as concerns over the company's borrowing binge to finance its AI ambitions continue to spur heavy hedging by banks and investors, they warned in a note Wednesday. The CDS could break through 1.5 percentage point in the near term and could approach 2 percentage points if communication around its financing strategy remains limited as the new year progresses, the analysts wrote. Oracle CDS hit a record 1.98 percentage point in 2008, ICE Data Services shows... "Over the past two months, it has become more apparent that reported construction loans in the works, for sites where Oracle is the future tenant, may be an even greater driver of hedging of late and going forward," wrote the analysts... Concerns have also started to weigh on Oracle's stock, which the analysts said may incentivize management to outline a financing plan on the upcoming earnings call... Thanks to Slashdot reader Bruce66423 for sharing the article.

Hacker News

You Want Microservices, but Do You Need Them?

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30 Nov 2025 7:02pm GMT

Program-of-Thought Prompting Outperforms Chain-of-Thought by 15% (2022)

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30 Nov 2025 6:34pm GMT

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What Happens When You Kick Millions of Teens Off Social Media? Australia's About to Find Out

27 million people live in Australia. But there's a big change coming if you're under 16, reports CNN: From December 10, sites that meet the Australian government's definition of an "age-restricted social media platform" will need to show that they're doing enough to eject or block children under 16 or face fines of up to 49.5 million Australian dollars ($32 million). The list includes Snapchat, Facebook, Instagram, Kick, Reddit, Threads, TikTok, Twitch, X, and YouTube... Meta says it'll start deactivating accounts and blocking new Facebook, Instagram and Threads accounts from December 4. Under-16s are being encouraged to download their content. Snap says users can deactivate their accounts for up to three years, or until they turn 16... There's another sting in the ban, too, coming at the end of the Australian school year before the summer break in the southern hemisphere. For eight weeks, there'll be no school, no teachers - and no scrolling. For millions of children, it could be the first school break they spend in years without the company of time-killing social media algorithms, or an easy way to contact their friends. Even for parents who support the ban, it could be a very long summer. "There's every chance that bans will spread..." the article argues. "Other countries around the world are taking notes as Australia explores new territory that some say mirrors safety evolutions of years past - the dawning realization that maybe cars need safety belts, and that perhaps cigarettes should come with some kind of health warning." And according to the Associated Press, Malaysia "has also announced plans to ban social media accounts for children under 16 starting in 2026." But CNN reports few teenagers in Australia knew about its impending ban on social media, judging by a show of hands at one high school auditorium. Teenagers in the audience had two questions. "Can you get your account back when you turn 16?" "What if I lie about my age?"

Hacker News

NixOS 25.11 Released

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30 Nov 2025 6:21pm GMT

Slashdot

Amazon Tells Its Engineers: Use Our AI Coding Tool 'Kiro'

"Amazon suggested its engineers eschew AI code generation tools from third-party companies in favor of its own ," reports Reuters, "a move to bolster its proprietary Kiro service, which it released in July, according to an internal memo viewed by Reuters." In the memo, posted to Amazon's internal news site, the company said, "While we continue to support existing tools in use today, we do not plan to support additional third party, AI development tools. "As part of our builder community, you all play a critical role shaping these products and we use your feedback to aggressively improve them," according to the memo. The guidance would seem to preclude Amazon employees from using other popular software coding tools like OpenAI's Codex, Anthropic's Claude Code, and those from startup Cursor. That is despite Amazon having invested about $8 billion into Anthropic and reaching a seven-year $38 billion deal with OpenAI to sell it cloud-computing services..."To make these experiences truly exceptional, we need your help," according to the memo, which was signed by Peter DeSantis, senior vice president of AWS utility computing, and Dave Treadwell, senior vice president of eCommerce Foundation. "We're making Kiro our recommended AI-native development tool for Amazon...." In October, Amazon revised its internal guidance for OpenAI's Codex to "Do Not Use" following a roughly six month assessment, according to a memo reviewed by Reuters. And Claude Code was briefly designated as "Do Not Use," before that was reversed following a reporter inquiry at the time. The article adds that Amazon "has been fighting a reputation that it is trailing competitors in development of AI tools as rivals like OpenAI and Google speed ahead..."