Shares of Bloom Energy (BE +9.18%) leaped on Tuesday after the fuel cell maker expanded its artificial intelligence (AI) infrastructure partnership with Oracle (ORCL 0.52%).
Image source: Getty Images.
Energizing AI
Bloom will supply Oracle with an initial 1.2 gigawatts (GWs) of capacity. The energy supplier's fuel cells will help to power Oracle's cloud data centers in the U.S. Oracle plans to eventually purchase up to 2.8 GWs of Bloom's systems.
Bloom's solid oxide fuel cells deliver dependable, scalable electricity for its corporate clients. The power solutions provider's systems are well-suited for AI workloads. They can be deployed quickly, withstand rapid power fluctuations, and offer on-site power generation that reduces reliance on traditional grids.
"We are defining a shared vision for the future of energy and AI infrastructure, with Bloom advancing its position as the standard for onsite power," Bloom chief commercial officer Aman Joshi said.
NYSE: BE
Key Data Points
Fast gains
Notably, Bloom issued a 6-month warrant to Oracle on April 9, granting the cloud computing giant the right to buy up to 3,531,073 shares of Bloom's stock at an exercise price of $113.28 per share.
With Bloom Energy's share price now trading at $219 following today's gains, Oracle is already up over $370 million on its investment.
