TD Cowen Raises Possibility of Nvidia Credit Support for Oracle

TD Cowen raised the possibility Oct. 20 that Nvidia is providing credit support to Oracle, drawing attention to the financing behind Oracle’s expanding artificial intelligence infrastructure.

Oracle’s capital expenditures reached $28.5 billion in the quarter, up from $8.5 billion a year earlier. Its non-GAAP free cash flow was negative $5.4 billion over the same period.

As of Aug. 31, Oracle had $288 billion in additional lease commitments. The bulk of the lease commitments related to data centers and did not appear on Oracle’s balance sheet.

Nvidia supplies computing hardware for AI infrastructure. It recorded $89 billion in data center revenue in the quarter ended July 26, 2026.

Oracle raised $43 billion through debt and $5 billion through equity in fiscal 2026. It previously outlined a plan to raise about $40 billion through debt and equity in fiscal 2027.