{"id":62966,"date":"2026-06-10T17:38:26","date_gmt":"2026-06-10T21:38:26","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oracle-secures-67-billion-in-ai-contracts-as-canada-tightens-digital-safety\/62966\/"},"modified":"2026-06-10T17:38:26","modified_gmt":"2026-06-10T21:38:26","slug":"oracle-secures-67-billion-in-ai-contracts-as-canada-tightens-digital-safety","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oracle-secures-67-billion-in-ai-contracts-as-canada-tightens-digital-safety\/62966\/","title":{"rendered":"Oracle Secures $67 Billion in AI Contracts as Canada Tightens Digital Safety"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) signed $67 billion in AI infrastructure contracts<\/strong> during the fourth quarter, driven by unprecedented demand for its cloud services and GPU clusters.<\/li>\n<li><strong>The company\u2019s remaining performance obligations (RPO) surged to $638 billion<\/strong>, a 363% year-over-year increase, providing significant visibility into future revenue growth.<\/li>\n<li><strong>Oracle warned of near-term gross margin pressure in fiscal 2027<\/strong> as it accelerates massive data center expansion projects to meet this backlog.<\/li>\n<li><strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) pledged to cooperate with the Canadian government<\/strong> on the new Digital Safety Act, which may include a social media ban for minors under 16.<\/li>\n<\/ul>\n<h2>Oracle\u2019s AI Infrastructure Momentum<\/h2>\n<p>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>) reported a massive influx of business in its fiscal fourth quarter, signing <strong>$67 billion in AI infrastructure contracts<\/strong>. The company noted that a significant portion of these customers are either <strong>prepaying for services or providing their own hardware<\/strong>, a move intended to &quot;uncouple&quot; capital requirements from the corporation&#39;s direct balance sheet. This surge in demand has pushed Oracle&#39;s total <strong>remaining performance obligations (RPO) to $638 billion<\/strong>, up from $553 billion in the previous quarter.<\/p>\n<p>The company\u2019s <strong>Abilene, Texas data center<\/strong> remains a focal point of its expansion strategy. Oracle confirmed that the facility has already <strong>delivered 42% of its planned capacity<\/strong>, with an additional <strong>35% expected to come online within the next 90 days<\/strong>. Despite the robust demand, Oracle shares saw some volatility after the company signaled that <strong>gross margins are expected to decline in fiscal 2027<\/strong>. This dip is attributed to the aggressive acceleration of data center construction and the high initial costs of scaling global infrastructure.<\/p>\n<p>To fund this unprecedented growth, Oracle announced plans to <strong>raise approximately $40 billion in fiscal 2027<\/strong> through a combination of debt and equity. This includes a previously disclosed <strong>$20 billion at-the-market equity issuance<\/strong>. Management emphasized that while these investments create near-term margin pressure, they expect profitability to improve rapidly as data centers reach full contractual revenue levels.<\/p>\n<h2>Google and Canada\u2019s New Safety Standards<\/h2>\n<p>In a separate development, Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) has pledged to work closely with the Canadian government as Ottawa introduces the <strong>Digital Safety Act<\/strong>. The legislation, spearheaded by Culture Minister Marc Miller, aims to establish <strong>stricter cross-platform safety standards<\/strong> to protect younger users. The bill is expected to include a <strong>ban on social media for children under 16<\/strong>, though platforms that meet rigorous safety benchmarks may be eligible for exemptions.<\/p>\n<p>The Canadian government has characterized the legislation as a priority, citing the urgent need to mitigate harms associated with <strong>social media and AI chatbots<\/strong>. Google\u2019s commitment to these standards reflects a broader industry trend toward regulatory compliance as governments worldwide increase oversight of digital environments. The move follows similar legislative efforts in the United Kingdom and Australia aimed at enforcing <strong>age assurance and platform accountability<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oracle (ORCL) signed $67 billion in AI infrastructure contracts during the fourth quarter, driven by unprecedented demand for 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