Oracle Invests $28.5 Billion in AI Infrastructure, Boosting Cloud Capacity
Oracle Corporation (NYSE:ORCL) reported a significant increase in capital expenditures for its latest quarter as it expands cloud infrastructure to support artificial intelligence growth. The company spent $28.5 billion on capex and saw quarterly revenue rise by 30% to $19.3 billion, with remaining performance obligations reaching $664 billion due largely to new AI contracts exceeding $30 billion. Vertiv Holdings Co. (NYSE:VRT), a key supplier in power and cooling infrastructure for data centers, is also benefiting from the surge in demand driven by Oracle's expansion. Vertiv recently acquired Utility Innovation Group for up to $2.6 billion to enhance its capabilities in onsite power solutions as grid constraints become more prevalent. Both companies are seeing increased hedge fund interest with Oracle owned by 119 funds and Vertiv by 112, while short interests remain relatively low but slightly higher for Vertiv.
Topics: AI Cloud Computing Data Centers Infrastructure Spending