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Oracle Reveals Financial Model for 1GW AI Infrastructure with ~28% ROIRohan Paul (@rohanpaul_ai)T2·Infra
Oracle Reveals Financial Model for 1GW AI Infrastructure with ~28% ROI
Original title: For Oracle, what 1GW of AI infrastructure earns. ~$80B contract value, ~$37B capex, ~$16B annual rev...
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Oracle disclosed key financial metrics for its 1GW AI infrastructure project at Investor Day, highlighting an $80B contract value, $37B capex, and $16B annual revenue. The model assumes a 5-year average contract term with ~35% gross margin and ~28% ROI, utilizing a cost-plus pricing structure.
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Rohan Paul (@rohanpaul_ai) · 2026-10-29 16
For Oracle, what 1GW of AI infrastructure earns. ~$80B contract value, ~$37B capex, ~$16B annual revenue, 5-year average contract, ~35% gross margin, ~34% operating margin, ~28% ROI.
A 28% ROI implies about a 3.6-year cash payback on a 5-year contract, and the footnote says these contracts are cost-plus.
- From Oracle Investor day slide deck held yesterday, Oct 28, 2026, in Las Vegas.
