Oracle expands Bloom Energy deal days after receiving $400 million stock warrant

Oracle is set to bolster its investment in Bloom Energy following a significant warrant issuance. On Thursday, the tech giant received a warrant granting it the option to purchase up to 3.53 million shares of the fuel cell innovator at a price of $113.28 per share, totaling a potential investment of $400 million as part of their previously announced agreement from October. In a notable development after Monday's trading session, both companies declared an expansion of their existing partnership. Oracle has contracted 1.2 gigawatts of energy capacity from Bloom, which resulted in a remarkable 15% surge in Bloom's stock price, bringing it close to $203 per share. This price increase translates to a $316 million gain for Oracle over the warrant price, with the company having until October 9 to exercise the warrant. Overall, Oracle plans to acquire up to 2.8 gigawatts of Bloom's fuel cell systems, as outlined in their recent announcement. The first phase, involving 1.2 gigawatts, is projected to be completed by 2027. This collaboration originated in July, when Bloom committed to supplying energy to Oracle's U.S. data centers within a 90-day timeframe. Mahesh Thiagarajan, Oracle's executive vice president for Cloud Infrastructure, emphasized the importance of swiftly deploying Bloom's efficient fuel cell energy to meet rising customer demands across the country. Meanwhile, Oracle's stock experienced a nearly 13% rise during regular trading, driven by a broader recovery in shares of software companies that had faced challenges related to AI concerns. Despite this uptick, Oracle's stock remains down 20% for the year, although it did gain an additional 1.5% in after-hours trading. As the AI boom continues, Bloom Energy has emerged as a key player, attracting attention from data center developers seeking sustainable energy solutions to accommodate growing demand. The company’s fuel cells, which offer on-site power and can be installed rapidly without relying on the electric grid, have seen a remarkable rise in interest; its stock nearly quadrupled in 2025 and has increased over 100% this year alone, pushing its market capitalization beyond $50 billion. Bloom has already deployed hundreds of megawatts of fuel cells through partnerships with utilities such as American Electric Power and data center firms like Equinix and Oracle. In October, Bloom CEO KR Sridhar emphasized the need for AI infrastructure to be developed with precision and speed, likening it to a factory model. Oracle, which has secured over $100 billion in debt to finance its expansive AI data center projects, plans to utilize its Bloom fuel cells across its U.S. facilities, as stated in the announcement. An Oracle representative did not immediately provide a comment on the matter.