"We continue to get better and better at running these data centers, delivering them more cheaply, optimizing the amount of cost for networking and hardware spend, as well as power. We're very good at it. We're very, very good at reducing those costs during that time period."
"Oracle faced some questions about its AI data center buildout and how it plans to justify the billions of dollars it burns along the way. In February, Oracle announced a $50 billion debt raise to help fund its AI ambitions. In the last year, the company has announced major data center projects in Texas, New Mexico, and Michigan."
Oracle reported third-quarter earnings for fiscal 2026, with shares rising up to 10% after surpassing investor expectations and raising revenue guidance to $67 billion. The company is investing heavily in AI data center infrastructure across Texas, New Mexico, and Michigan, supported by a $50 billion debt raise announced in February. To address investor concerns about justifying massive capital expenditures, Oracle co-CEO Clay Magouyrk emphasized the company's focus on minimizing data center construction costs through operational efficiency, optimizing networking, hardware, and power expenses, and accelerating construction timelines. Oracle has a history of aggressive cost-cutting measures, including significant layoffs following its 2022 Cerner acquisition.
Read at Business Insider
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