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Oracle Sets 2030 AI Cloud Targets as Shares Fall on Capex Concerns

Investors questioned financing for a massive data‑center build despite $65 billion in new OCI commitments.

Overview

  • Oracle guided to $166 billion in Oracle Cloud Infrastructure revenue, $225 billion in total sales, and $21 adjusted EPS by fiscal 2030.
  • Management said OCI booked $65 billion in commitments within 30 days across seven deals from four customers, including Meta, and none from OpenAI.
  • Oracle outlined 30%–40% adjusted gross margins for AI infrastructure versus 65%–80% for traditional cloud and software, illustrating steady costs over a hypothetical six‑year, $60 billion contract.
  • Shares fell about 7% Friday after an initial uptick, as analysts flagged unclear capital‑expenditure plans, heavy build‑out needs, and financing risk despite an $18 billion bond sale last month.
  • Recent results showed cloud revenue up 28% to $7.2 billion, with earlier disclosures of a $455 billion backlog and large AI deals including OpenAI and Meta, while analysts noted supply and concentration risks.