AI tokens tumble after Oracle's disappointing quarterly results
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Oracle Corporation (NYSE: ORCL), the cloud computing giant co-founded by billionaire entrepreneur Larry Ellison, reported disappointing quarterly results despite massive spending on artificial intelligence (AI).
As the tech company's shares tumbled on the charts, so did the cryptocurrencies linked to decentralized AI projects.
Oracle results disappoint increasing AI spending
On Dec. 10, Oracle reported a lower-than-expected revenue of $16.1 billion for the three months to November, as compared to the estimated $16.21 billion.
In September, Oracle raised $18 billion in one of the largest debt issuances in the tech industry. It also entered into a $300 billion deal with the AI leader OpenAI the same month.
Given the company's growing AI spending, the earnings have disappointed investors. After the market opened on Dec. 11, Oracle's shares slid nearly 14% to trade at $192.12.
Ryan Lee, Senior Vice President of Product and Strategy at the financial services company Direxion, told TheStreet Roundtable, "All eyes shifted to Oracle reporting following the FOMC meeting, as there has been a fair amount of investor anxiety around a potential bubble in the world of AI infrastructure."
"Their weak cloud sales could have ripples across all legs of the AI trade," he warned.
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AI tokens tumble after Oracle shares slip
Decentralized AI refers to AI infrastructure systems that run across a distributed blockchain network, instead of being controlled by centralized tech giants like Google or OpenAI.
The financial transactions on these projects are paid in crypto assets, also called AI tokens.
TAO, the AI token supporting the open-source protocol Bittensor, powering the decentralized machine learning (ML) network, was trading at $286.06 at the time of writing, down 3.89% in the last 24 hours.
The NEAR token that powers the AI-native NEAR Protocol fell 7.48% in a day to trade at $1.64.
ICP is a popular AI token that supports the Internet Computer blockchain to be leveraged to build both Web 2.0 and Web 3.0 platforms. It fell 4.44% and was trading at $3.35.
FIL supports a decentralized storage system called Filecoin that aims to “store humanity’s most important information.” The AI token dropped 8.5% to trade at $1.36.
RENDER is an AI token behind a decentralized GPU compute platform called the Render Network, which is used for 3D, ML, and generative AI services. It slipped 6.27% in a day to trade at $1.55.
The IP token powers the Story blockchain, which enables intellectual property (IP) tokenization. The token fell 6.94% to trade at $1.98.
FET is an AI token behind the Artificial Superintelligence Alliance consortium that delivers automation to decentralized finance (DeFi). It slipped 7.52% in a day to trade at $0.2375.
VIRTUAL, the token behind the AI and Metaverse protocol called the Virtuals Protocol, dropped 7.09% to trade at $0.7985.
The Graph project deploys AI to index blockchain data. The GRT coin supporting it similarly fell 7.09% to trade at $0.04276.
