Oracle expands Bloom Energy deal days after receiving $400 million stock warrant

Oracle is poised to make a quick buck off an investment in Bloom Energy.On Thursday, Oracle was issued a warrant to purchase up to 3.53 million shares of the fuel cell maker at $113.28 a share, for a total investment of $400 million, as part of an agreement announced in October. After the close of trading on Monday, the two companies said they're expanding a prior partnership, with Oracle contracting 1.2 gigawatts of capacity from Bloom. Shares of Bloom soared 15% on the announcement, lifting the stock to almost $203 and marking a $316 million gain for Oracle over the warrant price. Oracle has until Oct. 9 to exercise the warrant. In total, Oracle intends to procure up to 2.8 gigawatts of Bloom systems, according to Monday's statement. The software company has contracted for 1.2 gigawatts, with plans to finish the deployment in 2027. The companies first came together in July, when Bloom said it would be delivering energy to U.S. Oracle data centers within 90 days."By rapidly deploying Bloom's reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States," said Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, in Monday's statement. Oracle was already having a good day. The stock jumped almost 13% in regular trading as investors snapped up shares of software companies that have been beaten down on AI concerns. Oracle's stock is down 20% for the year even after the rally, though it got another 1.5% bump in extended trading. Bloom has been a major beneficiary of the AI boom as data center developers look for alternative forms of energy to meet surging demand. The company's fuel cells provide on-site power that can be quickly installed because they don't rely on a connection to the electric grid. Shares of Bloom nearly quadrupled in 2025 and were up more than 100% this year as of Monday's close. The company's market cap has topped $50 billion. Bloom has already positioned hundreds of megawatts of fuel cells through deals with utilities like American Electric Power and data center developers including Equinix and Oracle. In striking a deal in October with Brookfield Asset Management to install fuel cells in AI data centers, Bloom CEO KR Sridhar said that, "AI infrastructure must be built like a factory—with purpose, speed, and scale."Oracle, which has raised over $100 billion in debt to fund its massive AI data center buildout, plans to operate its Bloom fuel cells at facilities in the U.S., the statement said.An Oracle spokesperson didn't immediately respond to a request for comment. WATCH: Cramer’s Mad Dash: Bloom EnergyChoose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.