# 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.
- Title: Oracle's cloud business hits hypergrowth · Cloud Wars
- Summary: 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…
- Keywords: oracle, cloud infrastructure, ai data centers, rpo, q1 earnings, hyperscalers, openai, microsoft, cloud growth, backlog, Oracle's, cloud
- Source: Cloud Wars — https://cloudwars.com/cloud/oracle-q1-cloud-infrastructure-soars-121-rpo-up-46-to-664-billion
- Author: Bob Evans
- Published: 2026-09-11T15:00:00+00:00
- Read time: 1 min
- Topics: oracle, cloud infrastructure, ai data centers, rpo, q1 earnings, hyperscalers, openai, microsoft, cloud growth, backlog
## 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.
## Key takeaway

Oracle is closing the gap with larger cloud competitors through explosive growth in AI infrastructure, backed by massive customer commitments like OpenAI's deal.