By Aditya Raghunath
Publication Date: 2026-06-08 11:03:00
I’ve watched many companies chase a hot trend and end up in trouble as a result. The story tends to look exciting on the way up and painful on the way down.
oracle is the latest name to test this theory. The software giant is investing tens of billions of dollars in data centers to secure some of the artificial intelligence (AI) Boom.
The growth is real. That’s the calculation.
And Oracle’s latest quarterly report shows just how high that bill has become.
Oracle’s cloud pivot is expensive
For decades, Oracle (ORCL) ran an asset-light business. It sold software licenses and support contracts. These products generated large profit margins and required little upfront spending.
This model is changing rapidly.
Oracle now wants to compete with Amazon, Microsoft and Google in cloud computing. To do this, chips have to be bought, buildings rented and data centers built.
All of this costs significant capital.
The shift in cash flow becomes clear. In its 10-Q for the quarter…
