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Oracle sells out AI capacity through 2028

By Drooid · Oct 28, 2026 · How we work

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Summary

Oracle announced its AI capacity is sold out through 2028 and will add Google TPUs in 2027.
Oracle pledged $20 billion additional debt-equity financing for AI through fiscal 2030.
CFO Hilary Maxson expects free cash flow to turn positive in H2 fiscal 2028.
Oracle integrated OpenAI’s ChatGPT, Codex and Snowflake’s AI Data Cloud as native OCI services.
Oracle signed a deal with Cerebras to host its AI chips on OCI.

History

In 2011 IBM’s Watson beat Jeopardy! champions, showcasing natural-language AI and earning a $1 million prize. Building on that hype, IBM launched a dedicated Watson business unit in January 2014 with a $1 billion investment to deliver cloud-based AI services to enterprises. Oracle’s 2028 $20 billion AI financing and partner network echoes IBM’s early push, signaling a new wave of competitive cloud AI offerings.

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In 2011 IBM’s Watson beat Jeopardy! champions, showcasing natural-language AI and earning a $1 million prize. Building on that hype, IBM launched a dedicated Watson business unit in January 2014 with a $1 billion investment to deliver cloud-based AI services to enterprises. Oracle’s 2028 $20 billion AI financing and partner network echoes IBM’s early push, signaling a new wave of competitive cloud AI offerings.

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