Oracle plans to increase its AI compute capacity from about 1 GW in FY25 to 10 GW by the end of FY28, roughly a tenfold expansion. In the first quarter of FY27, the company brought 850 MW of capacity online, including more than 300,000 GPUs, across 38 projects in 11 countries. Its remaining performance obligations reached $664 billion, three to four times higher year over year, driven mainly by AI contracts. Oracle expects to fund most of the expansion through partnerships, customer prepayments and bring-your-own-hardware arrangements. Capital expenditures are projected to peak in FY27 and FY28, while free cash flow is expected to turn positive in the second half of FY28 and exceed $30 billion in FY29. The company estimates it will require no more than $20 billion in additional external financing through FY30.
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