Oracle isn’t ready to spend a lot of money on AI yet. Here’s why investors shouldn’t worry. | The colorful fool

Only a few companies take advantage of the enormous growth potential Artificial Intelligence (AI) more than oracle (ORCL 0.86%) at the moment. Oracle took a money-powered battering ram and smashed it into it Amazon, MicrosoftAnd alphabetis seemingly impenetrable Cloud infrastructure fortress. The strategy is working as Oracle is rapidly increasing its AI sales.

But this comes at a high cost, as Oracle’s cash burn has gone from a harmless scented candle to a full-blown bonfire.

For this reason, Oracle is confident that the costs are manageable and whether this is the case Growth stock is an immediate purchase.

A leveraged bet on AI

In just one year, Oracle went from positive free cash flow to losing tens of billions of dollars per quarter – a testament to the severity of its buying spree.