KR Sridhar
Cameron Costa | CNBC
oracle be ready to quickly profit from an investment in bloom energy.
On Thursday, Oracle was issued a warrant to buy up to 3.53 million shares of the fuel cell maker’s stock for $113.28 each, for a total of $400 million, as part of a deal announced in October. After the close of trading on Monday, the companies announced that Oracle would contract 1.2 gigawatts of capacity from Bloom, expanding their existing partnership.
Following the announcement, Bloom’s stock price soared 15% to nearly $203, giving Oracle a profit of $316 million over the warrant price. Oracle has until October 9th to exercise the warrant.
In total, Oracle plans to procure up to 2.8 gigawatts of Bloom systems, according to a statement Monday. The software company has a contract for 1.2 gigawatts and plans to complete the installation in 2027. The two companies first partnered in July, when Bloom announced it would supply energy to Oracle’s data centers in the U.S. within 90 days.
“The rapid deployment of Bloom’s reliable and efficient fuel cell energy will allow us to quickly meet the demands of our customers across the United States,” Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, said in a statement Monday.
Oracle was already having a good day.
The stock rose about 13% in regular trading as investors bought up shares of the software company, which has been struggling due to concerns about AI. Even after the rally, Oracle shares are still down 20% since the beginning of the year, but rose another 1.5% in after-hours trading.
Bloom has been a big beneficiary of the AI boom as data center developers seek alternative energy to meet surging demand. The company’s fuel cells provide on-site power that is quick to install and does not rely on connection to the power grid.
Bloom’s stock price has nearly quadrupled in 2025 and is up more than 100% this year as of Monday’s close. The company’s market capitalization exceeded $50 billion.
Bloom has already installed hundreds of megawatts of fuel cells through contracts with power companies like American Electric Power and data center developers like Equinix and Oracle. “Like a factory, AI infrastructure must be built with purpose, speed, and scale,” Bloom CEO KR Sridhar said when the company signed a deal with Brookfield Asset Management to install fuel cells at its AI data center in October.
Oracle said in a statement that it has raised more than $100 billion in debt to fund the construction of large-scale AI data centers and plans to operate Bloom fuel cells at facilities in the United States.
An Oracle spokesperson did not respond to a request for comment.
Watch: Cramer’s Mad Dash: Bloom Energy
