Oracle posts 30% revenue growth fueled by AI cloud demand as debts hits $125 billion
Oracle said AI cloud contracts topped $30 billion as it expanded data centers, while total debt reached $125 billion and free cash flow stayed negative.
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4 Articles
Oracle posts 30% revenue growth fueled by AI cloud demand as debts hits $125 billion
Oracle reported 30% revenue growth for the latest quarter, beating estimates, driven by strong cloud infrastructure demand amid artificial intelligence buildout. The company now carries $125 billion in debt funding its data center expansion.
Oracle raised its portfolio of outstanding bonds to $664 billion and exceeded quarterly revenue forecasts, but continues to spend billions to build AI infrastructure. The challenge for the company will be to turn those contracts into sufficient revenue and cash to sustain the investment.
Wait–there’s much more AI debt to worry about–there’s $1.65 trillion off the books
A number of readers pointed out that my piece on the soaring debt at Oracle from its spending on the AI infrastrucure build out was much too optimistic. Besides the danger of on-the-books debt at Oracle (ORCL) getting down graded to junk bond status, there’s all the off-balance sheet debt that the big six AI hyperscalers--Alphabet, Amazon, Microsoft, Meta, Oracle and SpaceX--have essentially hidden in Special Purpose Vehicles (SPVs), structures …
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