Overview
- Oracle’s six-year, $1.65 billion supply deal with Australia’s Datapod, reported April 27, secures modular data centers to deploy and maintain AI infrastructure in the United States and Europe.
- Wedbush’s Dan Ives reaffirmed an Outperform view with a $225 price target and called the recent share selloff an overreaction tied to OpenAI headlines, saying Oracle has funding to add compute capacity for at least three years.
- The company cites $553 billion in Remaining Performance Obligations, or contracted future revenue, as the base for converting AI demand into cloud sales.
- Financing for a flagship Michigan data center closed April 25 after Bank of America led $14 billion in project bonds within a $16 billion package, signaling strong appetite for AI infrastructure debt.
- Execution and credit risks remain given about $125–135 billion of debt, a 2026 capital spending plan near $50 billion, and heavy exposure to OpenAI that Wedbush estimates at roughly $300 billion of the backlog.