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Oracle Banks on $553 Billion AI Backlog as Debt and Layoffs Reshape Its Bet

Mounting debt, cash burn test Oracle's plan to turn a $553 billion backlog into growth.

Overview

  • Oracle says its contracted backlog has reached $553 billion for AI data‑center work, and it expects to meet its fiscal 2027 growth targets.
  • Much of the demand ties to a reported multi‑year OpenAI commitment of about $300 billion and a planned 4.5‑gigawatt U.S. buildout.
  • The company is financing that build with heavy borrowing, lifting non‑current debt to about $124.7 billion and pushing trailing free cash flow to roughly negative $24.7 billion.
  • Large job cuts are under way, with at least 10,000 roles eliminated and estimates as high as 30,000, and many staff said a pre‑dawn email announced the loss with immediate access cuts.
  • Financing continues at the project level, as Reuters reported a roughly $16 billion package for a 1‑gigawatt Michigan campus backed by Blackstone equity and Bank of America‑led bonds.