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Oracle's AI Backlog and Cash Crunch | Raleigh News
Oracle just had its best sales year ever, but the stock isn’t reflecting it—thanks to a jaw-dropping $638 billion in AI-driven backlog, fueled by its new role as the landlord of AI infrastructure. The company’s pouring billions into building out this capacity, creating a $23.7 billion free cash flow deficit, funded by debt and new stock. A massive $300 billion deal with OpenAI—making up more than half that backlog—adds both upside and risk: Oracle’s future hinges on OpenAI’s growth, while investors watch nervously for signs of sustainable cash flow without over-leveraging or diluting…
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