Bloomberg Intelligence Oracle Signed Cloud Services Worth $30 Billion a Year
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Jun 30, 2025 Stephanie Diaz, a Senior Associate at BNEF, highlights nuclear power's resurgence as a clean energy solution to meet AI's growing demands. She discusses how regulatory changes and technology advances are transforming the U.S. nuclear sector. Meanwhile, Michelle Martin, President of Prosperity, analyzes the market outlook for H2 2025, addressing volatility and investment strategies, especially in transitioning stock dynamics. Together, they explore the intricate balance of energy needs and market opportunities during a pivotal time.
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Oracle's Massive Cloud Deal
- Oracle signed a cloud services deal potentially worth $30 billion annually by FY 2028, surpassing its entire current cloud infrastructure revenue.
- This contract is likely linked to OpenAI and represents a major leap for Oracle's cloud ambitions amid AI growth.
Oracle's Cloud Growth Drivers
- Oracle's cloud infrastructure revenue is $10 billion annual run rate but this new deal could triple it with one customer.
- Massive investments in CapEx are expected, with margin pressures offset by gains in market share driven by AI workloads.
Investors Watch Execution Risks
- Investors should focus on execution risks, especially related to data center expansions and securing sufficient power.
- Any delays or funding issues could impact timelines despite strong AI-driven demand for cloud infrastructure.