Oracle in Talks for Financing to Procure Chips for 1GW Data Center

Oracle is in talks with Apollo Global Management and Goldman Sachs over a dedicated financing arrangement to procure chips for a 1-gigawatt data center, according to The Wall Street Journal and Bloomberg on Oct. 8.

People familiar with the matter said Oracle hopes to close the deal as soon as 2026, with discussions still ongoing with multiple potential financing partners. The structure could involve private investors setting up an off-balance-sheet vehicle to buy the chips and lease them back to Oracle, a move aimed at bridging the gap between hardware purchase payments and cash flow from cloud computing revenue while avoiding additional debt on Oracle's books.

It remains unclear how many chips Oracle plans to finance, though equipping a 1-gigawatt data center with Nvidia chips could cost tens of billions of dollars.