Oracle reveals $80B AI infrastructure contract value at Investor Day

The cloud giant laid out the economics of a roughly 1 GW AI buildout and capped outside financing to calm nervous investors Oracle finally showed investors the spreadsheet behind its AI data center spree. At its Investor Day on October 28, 2026, the company disclosed that a large AI infrastructure contract carries approximately $80 billion in remaining performance obligations (RPO). RPO is contracted revenue that a customer has committed to but Oracle has not yet booked. Think of it as a signed lease where the rent checks haven’t arrived. The market liked what it heard. Oracle shares jumped by roughly 11 to 13% on the day as financing concerns eased. The math behind one gigawatt The headline contract comes with an estimated total capital expenditure of around $37 billion. That is what Oracle expects to spend building the infrastructure before the revenue arrives. Once fully ramped, the buildout is anticipated to bring in roughly $16 billion in annual revenue. That revenue level corresponds to a capacity scale of about 1 gigawatt (GW). Oracle expects these contracts to run for an average of five years. The company is targeting a gross margin of approximately 35% and an operating mar...