Bloom Energy said on Monday it would supply Oracle with up to 2.8 ​gigawatts of fuel cell capacity under ‌an expanded deal as rising artificial intelligence use drives up power consumption.

Last week Oracle received a warrant to buy nearly $400 million in Bloom Energy's stock, which jumped on Monday after the companies announced an expanded deal.

Oracle (ORCL) stock surged by as much as 8% Tuesday morning on news that the data center and cloud operator has signed a deal to purchase as much as 2.8 gigawatts of fuel cell power from the energy provider Bloom Energy (BE).

Bloom Energy (NYSE:BE) stock is up 14% in early trading today, and Oracle (NYSE:ORCL | ORCL Price Prediction) stock is up 7%, after the two companies announced an expanded partnership to deploy up to 2.

After about 30,000 layoffs, Oracle is expanding its AI infrastructure push with a major energy deal with Bloom Energy. The company is securing massive power capacity for data centres, suggesting how energy demand is becoming a key challenge in the AI race.

Oracle Corp. agreed to purchase as much as 2.8 gigawatts of fuel-cell power from Bloom Energy Corp. to supply data centers for artificial intelligence work.

Oracle expands its Bloom Energy deal for up to 2.8GW of fuel cells to power AI data centers—faster time-to-power and lower risk.