Oracle’s AI Push Gets pricier as restructuring bill climbs to $2.8B

Oracle is increasing the expected cost of its fiscal 2026 restructuring by about $700 million to roughly $2.8 billion as it accelerates its AI-driven cloud expansion, with costs including severance and other exit expenses. The move follows Oracle’s report of more than $30 billion in new AI cloud contracts and a backlog of $664 billion, with about half expected to convert to revenue over the next 36 months. While the AI push could improve efficiency and long-term growth, near-term earnings and cash flow remain pressured, and the company plans to finance ongoing capital expenditure—potentially up to $40 billion through debt and equity—despite continued large cash burn.