Checks from investment bank TD Cowen indicate Oracle resumed leasing data center capacity in the third quarter of 2026. Its key supplier, Nvidia, reportedly provided credit support. The move follows a period of heavy capital spending as Oracle builds its cloud infrastructure to meet rising demand for AI computing. Oracle has billions of dollars in lease commitments that have not yet appeared on its balance sheet.
The arrangement suggests vendor financing, in which a key supplier helps a customer fund expansion in order to secure future sales. Nvidia’s backing could ease concerns about financing as the AI boom drives heavy borrowing across the market. It is also seen as an indicator of future growth in Oracle’s remaining performance obligations (RPOs).