# Oracle Shifts to Usage-Based AI Billing Model Oracle moves beyond seat-based subscriptions by charging for AI task execution volume. - **Source:** [www.theregister.com - Articles](https://brifing.si/source/2c34ea50-d341-4a10-925d-12c012a9ad10) - **Published:** 2026-10-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/0ed89faf-d351-43cf-8319-e9283b098d05 ## Transitioning Revenue Models Oracle is evolving its enterprise software monetization strategy by introducing usage-based billing for AI tasks. Executive Vice President Chris Leone confirmed that revenue will scale with AI workload consumption rather than traditional seat counts. This shift allows the company to capture value directly from automated business processes executed within its software suite. ## Fusion Claw Integration The newly revealed Fusion Claw runtime enables customers to manage AI agents that automate complex workflows. Targeting ERP, finance, and supply chain management, this tool operates within Oracle Cloud Infrastructure. It is designed to handle tasks both inside and outside the Fusion application environment, directly driving the new consumption-based revenue model. ## Aggressive Infrastructure Spending Oracle is financing a massive datacenter expansion through significant debt and negative cash flow. The company reported spending 55.7 billion dollars on infrastructure in fiscal year 2026. Projections for fiscal 2027 indicate a further increase to between 90 and 95 billion dollars, reflecting a high-stakes bet on capturing AI market share. ## Capital Raising Strategy To sustain its infrastructure spree, Oracle plans to raise approximately 40 billion dollars in debt and equity during 2027. This follows an 18 billion dollar debt issuance completed in September 2025. The company aims to reach 225 billion dollars in revenue by fiscal 2030, representing a 35 percent compound annual growth rate. ## Accelerating Cloud Migrations Co-CEO Mike Sicilia highlighted AI's role in automating software implementation and migrations. By reducing the time and cost required to move on-premises customers to the cloud, Oracle intends to eliminate historical headwinds. This strategy specifically targets competitive customers, aiming to convert them to the Oracle Cloud Infrastructure ecosystem more efficiently. ## Monetizing On-Premises Base Oracle views its large on-premises customer base as a primary growth driver for cloud adoption. Sicilia noted that moving these users to the cloud results in a multiple increase in revenue. The company expects AI tools to lower the barriers to entry, encouraging rapid adoption among legacy users who previously resisted change. ## Financial Outlook Targets The company anticipates achieving positive cash flow by the second half of fiscal 2028. Capital expenditure is expected to decline in the following financial year as the current datacenter build-out matures. Investors have responded positively to these targets, which balance aggressive short-term spending against long-term revenue growth from AI-driven application usage. ## Strategic AI Implementation Beyond embedding AI into products, Oracle is leveraging AI to streamline the deployment of its own software. By automating the migration process, the company aims to shorten sales cycles and increase customer lifetime value. This dual approach of product-level AI and implementation-level AI forms the core of Oracle's long-term enterprise strategy. ## Sources covering this story - https://www.theregister.com/applications/2026/10/29/oracle-wants-to-bill-you-for-every-ai-task-not-just-every-seat/5306403 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._