Oracle’s earnings highlight both the opportunity and risk in the AI infrastructure race.

$ORCL Cloud Infrastructure revenue jumped 121% YoY to $7.4B, while its backlog reached $664B.

The company added over $30B in AI cloud contracts and delivered more than 300,000 GPUs. However, free cash flow remained negative at $5.4B.

Strong demand is evident, but investors now need evidence that Oracle’s enormous AI investment can generate sustainable cash returns.

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