Oracle is doubling capital expenditure for 2025, said CFO Safra Katz – as the firm’s cloud revenue looks set to hit $25 billion this fiscal year.
Katz was speaking on an earnings call during which she said “record level AI demand drove Oracle Cloud Infrastructure revenue up 52%...”
Despite this, earnings data shows that hardware expenses were just $172 million for the fiscal Q2, 2025 that Oracle was reporting; 1% of revenues.
Katz said “I expect fiscal year 2025 capex will be double what it was in fiscal year 24” – which would bring it to approximately $13.6 billion.
In fiscal year 2021 Oracle’s CapEx was just ~$2 billion.
See also: Amazon ramps up AWS CapEx, admits capacity constraints
“GPU consumption was up 336% in the quarter, and we delivered the world's largest and fastest AI supercomputer, scaling up to 65,000 Nvidia H200 GPUs” she said, telling analysts that because OCI was highly modular and could start from just 10 racks, it was easy to optimise CapeX.
“On the CapEx side… our competitors always have to land with extremely large footprints before they can even get started. We can land with smaller footprints… and expand as customers need it. This allows us to really match our capital expenditure with ultimately our revenue.”
(From calendar 2025 Oracle will even offer a “OCI Dedicated Region25” that can deploy 150+ AI and cloud services at the edge or in a co-lo from just three racks, available within weeks and rapidly expandable, it says.)
Over 2024 Oracle made the unexpected decision to partner with AWS and Google as well as Azure to offer its ubiquitous Database in their clouds and on the call, CTO Larry Ellison said that this proposition was “going to exit well over $100 million in its first year.
