Oracle CEO Clay Magouik (center) speaks during a media tour of the Stargate data center in Abilene, Texas, on September 23, 2025. Stargate is a joint venture between OpenAI, Oracle, and SoftBank that is building data centers and other artificial intelligence infrastructure across the United States with promotional support from President Donald Trump.
Kyle Grillot | Bloomberg | Getty Images
on wednesday, oracle announced to investors that its capital expenditures for the current fiscal year will increase from the originally expected $35 billion to $50 billion, with new contracts with the following companies: meta and Nvidia.
This isn’t the only time the software giant plans to supply robust computing power to meet the surge in demand. Rental contracts are also gradually increasing.
As of Nov. 30, Oracle had $248 billion in data center leases and cloud capacity contracts over 15 to 19 years, the company said in a quarterly report Thursday. This was an increase of 148% compared to the end of August.
Oracle had $10 billion in cloud capacity contracts at the end of the quarter, according to filings.
Over the past decade, Oracle has diversified into cloud infrastructure, and now it competes with cloud infrastructure. Amazon, microsoft and google Rent servers, storage, and access to Nvidia graphics chips to run your artificial intelligence models. OpenAI announced a more than $300 billion deal in September, making it a major customer of Oracle Cloud.
Microsoft, a major OpenAI investor and long the company’s sole cloud provider, is also ramping up its lease deals to expand its internal data center footprint. Microsoft has signed deals with so-called neo-clouds CoreWeave and Lambda.
Oracle collaborated with startup Crusoe to deliver the first phase of OpenAI’s Stargate data center site in Abilene, Texas.
Investors are wondering how Oracle will pay for the AI data center expansion, RBC analyst Rishi Jallia, who has a hold rating on Oracle stock, told CNBC earlier this week.
In September, Oracle raised $18 billion in new debt. The company had more than $124 billion in debt through the end of November, including operating lease debt, up from about $89 billion a year earlier, according to filings.
Doug Koehring, Oracle’s chief financial officer, told analysts on a conference call Wednesday that “we have a variety of sources available to us to fund our growth across debt structures in public, bank and private debt markets.”
Some customers could also bring their own chips, which could reduce costs for Oracle, said Clay Magwik, one of the company’s two recently appointed CEOs.
Oracle reported lower-than-expected revenue on Wednesday’s earnings call, despite surging demand for its AI infrastructure. Shares closed down about 11% on Thursday.
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