From Cloud Wars · Bob Evans · · 1m 10s
Oracle's cloud business hits hypergrowth
Oracle's cloud infrastructure surged 121% in Q1, with a $664 billion backlog nearly matching Microsoft's despite being 6X smaller.
In brief
Oracle's cloud infrastructure surged 121% in Q1, with a $664 billion backlog nearly matching Microsoft's despite being 6X smaller. Oracle is closing the gap with larger cloud competitors through explosive growth in AI infrastructure, backed by massive customer commitments like OpenAI's deal. Originally reported by…
Oracle's cloud business explodes
Oracle's cloud infrastructure grew 121% to $7.4 billion in Q1, while the company's total cloud revenue hit $11.6 billion with 62% growth.
Backlog nearly matches Microsoft
Oracle compiled a $664 billion backlog, almost matching Microsoft's $678 billion, despite Microsoft's cloud business being 6X larger.
“how is it possible for Oracle to compile a backlog total of $664 billion, almost matching Microsoft's $678 billion, when Microsoft's cloud business is 6X larger than Oracle's?”
OpenAI deal drives confidence
A massive commitment from OpenAI and other customers shows they believe Oracle's infrastructure is the path forward for AI, backing the huge backlog.
Growth expected to accelerate
Oracle guided for Q2 cloud revenue growth between 64% and 71%, suggesting the company's momentum will continue strengthening.
“Total Cloud revenue is expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD.”
Investing heavily to meet demand
Oracle posted negative $5 billion free cash flow in Q1 as it aggressively invests in AI data centers to fulfill the massive $664 billion backlog.
What matters most
Oracle is closing the gap with larger cloud competitors through explosive growth in AI infrastructure, backed by massive customer commitments like OpenAI's deal.
