Oracle jumps, Bloom Energy soars 20% on AI datacenter power deal
Timothy A. Clary | Afp | Getty Images
Bloom shares soared 20%.
The rally built on Monday’s broad bounce in software stocks, which boosted Oracle nearly 13%. HubSpot, Salesforce, and ServiceNow gave up earlier gains.
Over the last few months, software stocks have tumbled as concerns mount that new artificial intelligence tools will upend their business models. The sell-off has also sparked worries about rising default risk in private credit, a major lender to the sector.
Oracle expanded its capacity partnership with Bloom Energy on Monday, days after receiving a warrant to purchase $400 million of the fuel cell power company’s stock.
As part of the deal, Oracle expects to procure up to 2.8 gigawatts of Bloom’s systems as it races to feed skyrocketing data center energy demand.
The software giant has already raised over $100 billion in debt to support data center scaling, a massive AI buildout, and is a key technology partner in the Stargate project.
Oracle shares have dropped 15% this year.
— CNBC’s Jordan Novet contributed to this story.
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