Oracle Promises AI Data Centers Will Be Fast, Cheap, and Mostly Magic

KEY POINTS

•Oracle reported third-quarter fiscal 2026 earnings Tuesday, raising revenue guidance to $67 billion amid aggressive spending plans.
•The company announced a $50 billion capital expenditure focused on fast, cheap construction for AI data centers in three U.S. states.
•Oracle faces skepticism over funding for its $500 billion Stargate AI project while competitors spend much more on AI infrastructure this year.

Oracle crossed fingers and spreadsheets while reporting its fiscal 2026 Q3 earnings, proudly projecting a $67 billion revenue finish and bragging about a $50 billion data center splurge funded by a February debt binge. Co-CEO Clay Magouyrk reassured Bernstein’s Mark Moerdler with an incantation on ‘fast and cheap’ construction in Texas, New Mexico, and Michigan—because nothing says cutting-edge AI like warehouses built ‘more quickly’ and ‘more cheaply.’ Meanwhile, after Oracle’s $28 billion Cerner acquisition layoffs in 2022, whispers surfaced that Stargate, their ambitious $500 billion AI palace with OpenAI, is struggling for cash and investor patience. Meanwhile, rivals Amazon, Microsoft, Google, and Meta will casually outspend Oracle by $550 billion this year. But hey, Oracle says they’re ‘very, very good’ at cost-cutting—because managing massive AI ambitions apparently just needs a confident catchphrase.