Oracle spent $28.5 billion in one quarter. Its long-term debt passed $160 billion.
Oracle's capital spending, money for buildings and equipment, reached $28.5 billion in the June-to-August quarter, against $2.3 billion in the same quarter two years earlier, Yahoo Finance reported on 8 October.
Citing Bloomberg, it said long-term debt nearly doubled over those two years to more than $160 billion.
The Wall Street Journal reported that Oracle is in talks with Apollo and Goldman Sachs on a deal in which investors fund a separate company that buys AI chips for Oracle to lease over time. Oracle shares fell 5% on 8 October and are down nearly 30% this year. The report carried no comment from Oracle.
Oracle's contract backlog, revenue promised under signed contracts, stood at $664 billion last quarter. Yahoo Finance also noted that the annual revenue of OpenAI, an Oracle cloud customer, is reportedly $20 billion short of earlier estimates.
A lease would swap a chip purchase for payments over years; the report gives no term or cost. Nor does it say when the $664 billion becomes revenue, or whether customers can delay it while lease payments run.
If you run on Oracle's cloud, does how it funds that capacity change the contract length you would sign?
Sources
Our file on Oracle
- 8 Oct
SAP said old ERP on Oracle loses its patches after 2030. Even SAP-sold licences.
- 6 Oct
FBI removed an Accenture contractor over a missed patch. Oracle issued it in June.
- 5 Oct
Oracle pledged $10 million to Nashville's orchestra. Its budget gap was $10 million.
- 3 Oct
Oracle planned a Wisconsin AI campus for 2027. Its power hook-up is still unapproved.
- 2 Oct
Tencent can't buy advanced AI chips. It leased 100,000 from Oracle for $7 billion.
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