ORCL · News · 20261022N

Capital Funding and Customer Prepayments

ORACLE CORP · 2026-10-22 · Importance 52 · Surprise 42

Oracle is using stock sales, debt issuance, and customer prepayments to fund its AI cloud infrastructure expansion. The company’s negative free cash flow contrasts with Microsoft’s internally funded Azure and Copilot investment. Delivery of Vera Rubin systems and execution of prepaid infrastructure contracts are identified as key factors for converting Oracle’s AI backlog into cash flow.

Key facts

• Oracle is employing a strategy of selling stock, acquiring debt, and relying on customer prepayments to compete in the AI cloud infrastructure market. source