# Oracle's Debt and Cloud Growth Clash

> Oracle's $664 billion cloud backlog fuels hypergrowth but deepens debt crisis.
- Title: Oracle's Debt and Cloud Growth Clash · Cloud Wars | Shortify
- Summary: Oracle's $664 billion cloud backlog fuels hypergrowth but deepens debt crisis. Oracle's AI and cloud business grew 121% while its $664 billion RPO surged…
- Keywords: oracle, cloud, rpo, debt, free cash flow, larry ellison, Cloud Wars
- Source: Cloud Wars — https://cloudwars.com/ai/oracles-two-realities-rising-debt-versus-cloud-hypergrowth-and-664-billion-rpo
- Author: Bob Evans
- Published: 2026-10-27T15:00:00+00:00
- Read time: 1 min
- Topics: oracle, cloud, ai, rpo, debt, free cash flow, larry ellison
## Oracle's Q1 Cloud Growth
Oracle Cloud Infrastructure soared 121% to $7.4 billion in fiscal Q1 ended Aug. 31.
## RPO Surges to $664 Billion
Oracle's RPO jumped 46% to $664 billion, second only to Microsoft's $678 billion.
## Negative Cash Flow
Free cash flow was -$5 billion, reflecting Oracle's debt-driven AI data center expansion.
## Market Cap Decline
Market cap dropped from $900 billion to $382 billion due to debt concerns.
## Key takeaway

Oracle's AI and cloud business grew 121% while its $664 billion RPO surged 46%, yet free cash flow remains negative at -$5 billion.