Oracle lease commitments increase almost 150% to accommodate AI demand
Oracle CEO Clay Magouyrk (center) speaks during a media tour at the Stargate data center on September 23, 2025 in Abilene, Texas. Stargate is a collaboration between OpenAI, Oracle and SoftBank, with promotional support from President Donald Trump, to build data centers and other infrastructure for artificial intelligence across the United States.
Kyle Grillot | Bloomberg | Getty Images
on wednesday, Seer It told investors it would increase capital spending to $50 billion in the current fiscal year from an earlier estimate of $35 billion due to new contracts from peers Meta And Nvidia.
That’s not the only way the software giant plans to provide powerful computing power to meet growing demand. It also speeds up rentals.
As of Nov. 30, Oracle had $248 billion in lease commitments for data centers and cloud capacity commitments to operate for 15 to 19 years, according to Oracle’s quarterly filing. filing on Thursday. This rate increased by 148% compared to the end of August.
Oracle had $10 billion in cloud capacity arrangements at the end of the quarter, according to the filing.
Oracle has pivoted to cloud infrastructure over the last decade and is now a competitor in this space Amazon, Microsoft And Google Renting access to servers, storage and Nvidia graphics chips to run AI models. OpenAI has become a major Oracle cloud customer, announcing a commitment of over $300 billion in September.
Microsoft, a major OpenAI investor that served as the startup’s sole cloud provider for years, also increased leases to increase its on-premises data center footprint. Microsoft has made deals with CoreWeave and Lambda, which is called neocloud.
Oracle works with beginning Crusoe To enable the first phase of OpenAI’s Stargate data center site in Abilene, Texas.
RBC analyst Rishi Jaluria, who has the equivalent of a hold rating on the stock, told CNBC earlier this week that investors are questioning how Oracle will pay for AI data center deployments.
Oracle grew in September $18 billion in new debt. As of the end of November, the company had more than $124 billion in debt when operating lease obligations were included, up from about $89 billion a year earlier, according to the filing.
“There are a variety of resources available to us across our debt structure in the public bond, bank and private debt markets in terms of financing our growth,” Oracle chief financial officer Doug Kehring told analysts on Wednesday’s conference call.
Clay Magouyrk, one of the company’s two recently appointed CEOs, said some customers may also bring their own chips, which could reduce Oracle’s costs.
In Wednesday’s earnings call, Oracle reported that its revenue was weaker than expected despite growing demand for its AI infrastructure. The stock ended the day down nearly 11% on Thursday.
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