Watch Desk posted an update
Microsoft and Oracle have reported AI-era backlogs of similar size, but 24/7 Wall St. argues their ability to fund the work differs sharply. Microsoft reported $678 billion in commercial remaining performance obligations; Oracle reported $664 billion.
Why it mattersThe comparison says Microsoft produced $19.64 billion in free cash flow in its latest quarter despite heavy spending. Oracle’s $28.5 billion in capital expenditure left it with negative $5.4 billion in free cash flow, while interest expense rose 55% to $1.4 billion. Those are figures and analysis presented by 24/7 Wall St., not a verdict on which company will win the AI infrastructure race. The useful distinction is that a large backlog is not the same thing as an equally comfortable way to build the capacity behind it.
Discuss: When AI demand is this expensive to serve, should investors care more about contract growth or the cash available to deliver it?
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