As demand for artificial intelligence continues to surge, Oracle has made a stunning commitment to the future of AI cloud computing. The tech giant plans to increase its capital expenditure to $36 billion by fiscal 2026, more than triple its 2024 levels. This massive investment focuses on expanding data centers and enhancing cloud infrastructure to support the growing AI workloads.
Oracle’s strategy is already paying off with record-breaking deals. The company signed a five-year, $300 billion agreement with OpenAI to provide 4.5 gigawatts of cloud capacity. This deal alone could generate $60 billion annually by 2027. Oracle has also secured multibillion-dollar contracts with Meta Platforms, xAI, Nvidia, and AMD.
The market has responded enthusiastically to Oracle’s AI cloud push. The company’s stock jumped 36% in a single day after announcing these AI deals, with an 88% rise so far in 2025. This growth propelled Oracle into the S&P 500’s top 10 most valuable companies. CEO Larry Ellison briefly became the world’s richest person when his net worth increased by $101 billion to $393 billion.
Oracle’s cloud infrastructure is increasingly used for AI tasks, where demand currently exceeds available supply. The company’s multi-cloud approach allows customers to run workloads across Oracle’s OCI and other cloud providers, offering greater flexibility. This aligns with broader industry trends as 77% of companies are now exploring or implementing AI in their operations. Oracle now offers multi-cloud Database@Cloud services across 23 regions, with plans to expand to 47 more locations.
Financial analysts project Oracle’s cloud infrastructure revenue could reach $166 billion by fiscal 2030, growing at 75% annually. The company’s total revenue target of $225 billion by 2030 demonstrates the significant role cloud services will play in Oracle’s future growth. The $36 billion investment positions Oracle among top cloud infrastructure players like Amazon Web Services, Microsoft Azure, and Google Cloud.
Oracle’s deepening partnerships with these competitors also enable multi-cloud workload deployments. This approach, combining software expertise with expanding infrastructure, gives Oracle a competitive edge in the rapidly growing AI cloud market. Oracle’s data centers now operate with more than 130,000 Nvidia Blackwell GPUs to power the most demanding AI workloads.
Despite the scale of Oracle’s investment, it represents just the beginning of what’s needed to meet the explosive demand for AI computing resources.
References
- https://stansberryresearch.com/stock-market-trends/how-oracle-just-turned-into-the-hottest-ai-company-in-the-stock-market
- https://www.spglobal.com/market-intelligence/en/news-insights/research/2025/09/oracle-bets-big-on-cloud-growth-as-ai-demand-accelerates?kw=%252525257bkeyword%252525257d%25253Fkw%25253D%252525257bkeyword%252525257d%253Fkw%253D%252525257bkeyword%252525257d%25253Fkw%25253D%252525257bkeyword%252525257d
- https://www.morningstar.com/news/marketwatch/20251016223/oracles-stock-rises-as-wall-streets-ai-profitability-concerns-are-put-to-rest
- https://www.folio3.ai/ai-pulse/oracle-stock-surges-36-percent-ai-cloud-contracts/
- https://cloudwars.com/cloud/larry-ellison-declares-oracle-will-be-1-in-cloud-databases-apps-and-ai-data-centers/
- https://rivkin.com.au/analysis-education/oracles-cloud-surge-reshapes-the-ai-investment-landscape/
