Oracle has signed a six-year, $1.65 billion supply agreement with Australian modular data center manufacturer Datapod to deploy and maintain AI infrastructure across the U.S. and Europe. The deal comes as Oracle shares face pressure from broader market concerns about AI demand.
Oracle shares have tumbled more than 55% from their peak as massive capital expenditures to build out AI data centers pressure cash flow. While cloud revenue soars, investor patience is being tested by the scale of the spending and a heavy reliance on key clients like OpenAI.
Oracle lands a key U.S. Air Force contract for its cloud infrastructure, providing a bright spot as the company navigates a volatile market and heavy investments in AI data centers.
Despite posting robust cloud revenue growth and a significant earnings beat, Oracle shares have sharply underperformed the market. Analysts remain largely bullish, seeing a potential disconnect between current price and long-term prospects in AI and multicloud infrastructure.
Michael Burry's concentrated short positions against high-flying AI names like Palantir and Oracle are yielding significant gains in early 2026, vindicating his long-standing warnings of a tech bubble. However, his bearish bet against Nvidia faces a tougher climb amid resilient chip demand.
