Bloom Energy announced an expansion of its partnership with Oracle to deploy up to 2.8 GW of solid‑oxide fuel‑cell capacity for Oracle’s AI and data‑center projects. The expansion builds on an earlier 1.2‑GW commitment and will see the first 1.2 GW installed immediately, with the remaining capacity scheduled for installation through 2027.
The deal adds a multi‑year revenue stream that will be reflected in Bloom Energy’s product backlog, which now stands at approximately $6 billion, up about 2.5 times year‑over‑year. The total backlog, including all contracts, is roughly $20 billion.
In addition to the capacity commitment, Bloom Energy issued Oracle a warrant to purchase up to 3.53 million shares of Bloom Energy Class A common stock at an exercise price of $113.28 per share, a transaction valued at nearly $400 million. The warrant aligns Oracle’s financial interests with Bloom Energy’s performance.
The partnership underscores Bloom Energy’s role as a preferred on‑site power solution for high‑density AI workloads. The company’s solid‑oxide fuel cells achieve about 60 % efficiency, compared with 35‑40 % for traditional grid power, and can run on natural gas, biogas, or hydrogen.
Bloom Energy’s recent financial results support the partnership’s significance. Q4 2025 revenue rose 36 % to $777.68 million, and non‑GAAP EPS reached $0.45, beating consensus estimates by $0.15. The company forecasts 2026 revenue of $3.1–$3.3 billion, reflecting confidence in continued demand for AI‑driven power solutions.
Management highlighted the partnership’s strategic importance. Oracle Cloud Infrastructure Executive Vice President Mahesh Thiagarajan said the collaboration “builds the power foundation and AI infrastructure to accelerate American AI leadership.” Bloom Energy Chief Commercial Officer Aman Joshi noted the expansion “delivers a multi‑year revenue stream and reinforces our position as a preferred on‑site power solution.”
Analysts have responded positively to the deal, with some upgrading Bloom Energy to “Strong Buy” and raising price targets, while others maintain a “Hold” rating, citing valuation concerns. The market reaction reflects the perceived value of the partnership and the warrant, balanced against broader valuation considerations.
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