Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Can Oracle’s Fusion Claw AI Push Outrun Rising Data Centre and Capital Risks?
Highlights:
Oracle Deepens Its Enterprise AI Push
Oracle Corporation is intensifying its artificial intelligence strategy, unveiling Fusion Claw on 29 September 2026 as it seeks to automate increasingly complex corporate workflows. The launch comes during a pivotal period for Oracle, with rapid cloud growth and new partnerships competing for investor attention alongside heavy infrastructure spending and execution risks.
Fusion Claw is a governed AI execution runtime embedded within Oracle Fusion Applications. Unlike conventional AI assistants focused mainly on generating responses, the technology is designed to reason, calculate, adapt and execute business processes under predefined corporate controls. Oracle rolled out 25 applications powered by Fusion Claw, taking its total suite of agentic applications to 75.
The new applications cover areas including finance, workforce planning, logistics and sales. Oracle says the architecture combines advanced AI models with deterministic computing, allowing reasoning to be used selectively while routine execution is handled more efficiently.
Cloud Strategy Expands Beyond Software
Oracle is simultaneously strengthening the infrastructure supporting its AI ambitions. The company and NetApp announced plans for a fully managed storage service integrating NetApp ONTAP capabilities directly into Oracle Cloud Infrastructure. General availability is targeted within the next 12 months.
The service is intended to support databases, AI data pipelines, regulated applications and other demanding enterprise workloads. The partnership could broaden OCI’s appeal among organisations seeking to migrate established workloads without extensively redesigning their existing storage environments.
Oracle’s cloud expansion is already translating into rapid growth. Cloud Infrastructure revenue reached US$7.4 billion during the first quarter of fiscal 2027, increasing 121% year-on-year, while total cloud revenue climbed 62% to US$11.6 billion. However, quarterly capital expenditure reached US$28.5 billion, highlighting the substantial investment required to support that expansion.
Project Jupiter Highlights Execution Risk
Infrastructure development remains a key challenge. Oracle issued a force majeure notice connected with Project Jupiter, a 2.45-gigawatt New Mexico data-centre campus scheduled to become operational in 2028. Oracle says the development timeline is still intact, while Blue Owl has indicated that its funding commitments have not changed.
Nevertheless, pipeline permitting and other regulatory hurdles demonstrate how power availability can complicate the conversion of booming AI demand into operational computing capacity.
Meanwhile, Larry Ellison pledged an additional 67 million Oracle shares as collateral for personal loans compared with a year earlier. Those additional pledged shares were worth about US$9.2 billion based on Oracle’s 25 September closing price, while total pledged shares represented roughly 36% of his Oracle holdings.
Outlook: Execution Becomes the Critical Test
Oracle’s latest moves reinforce its ambition to compete across the full enterprise AI stack—from intelligent applications to cloud infrastructure and data management. Fusion Claw potentially strengthens its position as businesses move toward more autonomous workflows.
The next phase, however, will depend heavily on execution. Investors are likely to watch AI adoption, OCI growth, infrastructure delivery and capital requirements closely. Oracle’s opportunity is expanding rapidly, but converting that opportunity into durable returns will require its physical infrastructure to scale alongside its software ambitions.
Note- All data presented is based on information available at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au