Oracle reported strong Q1 earnings with $19.3B revenue (+30% YoY) and $7.4B cloud infrastructure revenue (+121%), driven by AI infrastructure demand. The company booked over $30B in new AI cloud contracts and spent $28.5B in capex, with customers increasingly prepaying for capacity or supplying their own hardware to finance buildout.
Oracle completed a $20B share offering in twelve weeks as part of a $45-50B 2026 funding plan to support aggressive data center expansion, with Cloud Infrastructure revenue accelerating to 121% growth and $664B in backlog. The post argues Oracle's equity dilution validates similar capital raises by infrastructure companies like IREN, as customer prepayments and massive capex spending ($28.5B in one quarter) are standard costs of competing in AI cloud services where demand outpaces supply.