Oracle's cloud infrastructure sales rose 61%, and contracted work reached $664 billion, but it is raising $20 billion. Microsoft is ending its deal, Oracle dropped a $7 billion Tencent deal, and debt reached $169 billion; these risks outweigh the growth.
The lost customer work points to a real problem: Oracle supplied chips that no longer met Microsoft's needs. Oracle also walked away from a $7 billion Tencent deal. Cloud sales rose 61%, and contracted work reached $664 billion, showing that business is still growing. But debt nearly doubled to $169 billion, and Oracle plans to raise $20 billion through share and debt sales. The lost deals and borrowing needs outweigh the growth.
Microsoft is ending its rented-computing arrangement because Oracle's older chips did not meet its needs. The story gives no direct evidence of a change to Microsoft's sales or costs, so it does not change the company's outlook.
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