Oracle plans to boost its capital spending to as much as $95 billion in fiscal 2027, well above Wall Street’s $67.7 billion estimate. That figure includes up to $25 billion Oracle expects to recoup from customers building out data centers. The company already blew past its previous target in fiscal 2026, spending $55.66 billion versus a $50 billion goal. To fund the expansion, Oracle told investors it will raise nearly $40 billion next year through debt and equity, including a $20 billion at-the-market stock offering. The spending spree comes as Oracle races to build AI-ready infrastructure. Its massive “Stargate” data center in Texas—being developed alongside OpenAI and others—will be over 75% complete within 90 days, and OpenAI’s latest coding models will be available there. Oracle CEO Clay Magouyrk said the company is on pace to deliver one gigawatt of capacity in the next quarter, roughly matching what it built in the past year. On a call with analysts, CFO Hilary Maxson broke down the numbers: $70 billion of Oracle’s own spending plus $20–25 billion in customer-funded projects. She didn’t specify when that money will come back in, but stressed that analysts had underestimated Oracle’s outlay. She also warned gross margins will dip as the company plows more cash into its data-center pipeline. Oracle’s backlog of performance obligations—future revenue under contract—hit $638 billion, topping analyst forecasts of $592.5 billion. Despite the hit to its shares (they fell 8.9% in after-hours trading), the company is betting that these investments will position it as a serious challenger to Amazon Web Services and Microsoft Azure in the AI cloud market.