Oracle Eyes $40B Raise After Burning $23.7B Cash for Cloud Buildouts
ORCL•ORCL•ORCL•ORCL•Oracle recorded negative $23.7 billion in free cash flow over the trailing 12 months while generating $9.9 billion in quarterly cloud revenue, with its Cloud Infrastructure unit up 93% at $5.8 billion. The company plans to raise approximately $40 billion in debt and equity to fund AI-focused data center expansions.
Oracle reported negative $23.7 billion in free cash flow over the trailing twelve months as data center buildouts for AI workloads drove capital expenditures sharply higher.
In its most recent quarter, Oracle generated $9.9 billion in total cloud revenue, with its Cloud Infrastructure segment surging 93% year-over-year to $5.8 billion, underscoring robust demand for its cloud offerings.
To fund continued expansion of its physical data centers, Oracle announced plans to raise approximately $40 billion through debt and equity financing, a move that could significantly increase leverage and financial risk if enterprise AI spending slows.
