Key Points:
- Oracle gains $316 million on Bloom Energy warrant.
- Oracle expands partnership, contracting 1.2 gigawatts from Bloom.
- Bloom Energy shares surged 15% on the announcement.
- Bloom’s fuel cells provide on-site power for surging AI data center demand.
Oracle is set to make a significant profit from its investment in Bloom Energy. On Thursday, Oracle received a warrant to buy up to 3.53 million shares of the fuel cell maker at $113.28 per share, totaling a $400 million investment. This was part of an agreement announced in October. After trading closed on Monday, the two companies revealed they are expanding their existing partnership, with Oracle contracting 1.2 gigawatts of capacity from Bloom.
Bloom’s shares surged 15% on the news, pushing the stock to almost $203. This jump means Oracle has already seen a $316 million gain on its warrant price. Oracle has until October 9 to exercise this warrant.
Overall, Oracle plans to buy up to 2.8 gigawatts of Bloom systems, according to Monday’s statement. Oracle has already contracted for 1.2 gigawatts, with plans to finish installing them by 2027. The companies first teamed up in July when Bloom announced it would deliver energy to U.S. Oracle data centers within 90 days.
Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, said in Monday’s statement, “By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States.”
Oracle was already having a good day before this announcement. The stock had jumped almost 13% in regular trading as investors bought shares of software companies that had been hit by worries about AI. Even with this rally, Oracle’s stock is still down 20% for the year, though it got another 1.5% boost in extended trading.
Bloom has benefited greatly from the AI boom, as data center developers seek alternative energy sources to meet rapidly growing demand. The company’s fuel cells provide on-site power that can be installed quickly because they do not need to connect to the traditional electric grid. Bloom’s shares nearly quadrupled in 2025 and were up over 100% this year as of Monday’s close. The company’s market value has now passed $50 billion.
Bloom has already deployed hundreds of megawatts of fuel cells through deals with utility companies like American Electric Power and data center developers such as Equinix and Oracle. When striking a deal in October with Brookfield Asset Management to install fuel cells in AI data centers, Bloom CEO KR Sridhar said, “AI infrastructure must be built like a factory—with purpose, speed, and scale.”
Oracle, which has raised over $100 billion in debt to pay for its huge AI data center expansion, plans to use its Bloom fuel cells at facilities across the U.S., the statement said.
