Oracle AI Expansion: $20B Financing Cap, 10GW Target

Oracle plans to expand AI infrastructure capacity from about 1 gigawatt in fiscal 2025 to 10GW by the end of fiscal 2028. It delivered 850 megawatts in Q1 FY27, more than double the previous quarter, and reported $664 billion in total remaining performance obligations (RPO), with AI contracts driving much of the growth. At its October 28 Investor Day, Oracle provided economics for a large AI infrastructure contract: about $80 billion in RPO, roughly $37 billion in capital expenditure and around $16 billion in annual revenue at full capacity of about 1GW. The company targets a 28% return on investment and a 35% gross margin. Oracle expects capital spending to peak in FY27 and FY28, limits additional external financing for AI projects to $20 billion through FY30, and expects free cash flow to turn positive in the second half of FY28 and exceed $30 billion in FY29. Its shares rose roughly 11–13% on the day. For crypto traders, Oracle’s AI infrastructure plans are an indirect signal of demand for data centres and computing capacity, not a direct catalyst for any cryptocurrency. Execution, power availability, construction costs, customer demand and cash flow remain important indicators; setbacks could weigh on confidence in AI-related investments, while delivery against targets may support broader technology-sector sentiment.