Oracle steps up AI spending after 30,000 layoffs, expands Bloom Energy deal

Oracle is pushing deeper into AI infrastructure after going through about 30,000 layoffs. The company has now widened its existing partnership with Bloom Energy to secure a massive supply of power for its AI data centres, even as questions remain around workforce reductions and rising financial pressure. According to a report by Bloomberg, Oracle has agreed to procure up to 2.8 gigawatts of electricity generated through Bloom Energy's fuel-cell systems. A portion of this — around 1.2 gigawatts — has already been finalised and will be deployed across Oracle's US-based projects between this year and 2027. The scale of this agreement suggests how quickly energy demand is rising alongside the growth of AI workloads.

Oracle steps up AI spending, expands Bloom Energy deal

This is not a fresh tie-up but a larger extension of an ongoing collaboration. The companies have been working together on deploying modular fuel-cell systems that can be installed much faster than traditional power infrastructure. In fact, one such system was delivered in just 55 days, beating the expected 90-day timeline. That kind of speed is becoming critical as companies race to build data centres while facing delays in conventional power setups. It is worth pointing out that Bloom Energy has also issued a warrant allowing Oracle to purchase about 3.5 million shares at a fixed price until October 9. The announcement comes just days after Oracle was issued a warrant to purchase shares worth around $400 million, pointing to a deeper financial relationship between the two companies.

The announcement also triggered a strong reaction in the market, with Bloom Energy’s shares jumping sharply after the news. The company has already seen a steep rise in its stock value this year, driven by growing demand for alternative energy solutions for AI infrastructure.

Oracle's increasing focus on AI is also visible in its spending plans. The company has said it expects to invest around $50 billion in capital expenditure in the current financial year, with a large portion directed towards building data centre capacity for clients such as OpenAI and Elon Musk’s xAI. In the most recent quarter ending February, Oracle's infrastructure business generated $4.9 billion in revenue, showing rising demand for AI cloud services, as noted by Bloomberg.

The situation in the US energy sector is also playing a role. With rising electricity demand, power availability is increasingly becoming a bottleneck. As a result, large tech firms are now directly securing dedicated energy sources for their data centres instead of relying fully on public grids. Oracle's expanded arrangement with Bloom Energy fits into this larger trend.

Oracle layoffs raise questions amid heavy spending

However, this aggressive expansion comes amid reports of significant layoffs at Oracle. According to Press Trust of India, the company carried out job cuts on March 24 that may have affected as many as 30,000 employees, including about 12,000 in India. At the same time, BBC News reported that at least 10,000 employees are believed to have been impacted so far, based on internal indicators and employee accounts.

Oracle has not officially confirmed the exact numbers. Still, several current and former employees have shared their experiences publicly. Michael Shepherd, a senior manager at Oracle, wrote that "senior engineers, architects, operations leaders, program managers, and technical specialists" were among those affected. He also added, "The individuals affected were not let go because of anything they did or didn't do." He suggested that the layoffs were not on the basis of performance.

Many employees described receiving early morning emails informing them of their job loss along with severance details. Kendall Levin, a former employee, said her position was removed as part of what she called a “mass reduction in force.” Similar accounts have surfaced across LinkedIn, pointing to the scale of the layoffs.

While Oracle has not directly connected these job cuts to its AI investments, the timing has raised questions. The company has previously indicated that its internal use of AI tools allows teams to operate more efficiently with fewer people, according to BBC.

Financial concerns are also part of the picture. As reported by CNBC, Oracle has been increasing its spending on data centre infrastructure to keep pace with competitors in the cloud space, partly funding this expansion through debt. This has led to investor concerns about cash flow and long-term sustainability.