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Oracle (NYSE:ORCL | ORCL Price Prediction) and Amazon (NASDAQ:AMZN) both closed their latest quarters with the same uncomfortable admission: AI infrastructure is now devouring cash faster than either business can generate it. Oracle reported Q4 FY2026 on June 10, 2026, and Amazon followed with Q2 FY2026 on July 30, 2026. Set next to Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), they look the most exposed.
Oracle Is Betting the Balance Sheet on a Handful of AI Whales
Oracle’s cloud infrastructure segment grew 93% year over year, and RPO ballooned to $638 billion, up 363%. The catch: FY2026 CapEx hit $55.66 billion against operating cash flow of just $31.98 billion, producing free cash flow of -$23.69 billion. CFO Hilary Maxson told analysts to expect a “net cash outlay for capital expenditures of around $70 billion” in FY2027, financed by roughly $40 billion in debt and equity. Non-current debt already climbed to…