Oracle stock purchase rights of $205 million are granted by Hewlett Packard

As a sales incentive linked to Oracle’s purchase of HPE networking equipment for artificial intelligence data centers. Hewlett Packard Enterprise (HPE) is offering Oracle an option to purchase more than four million company shares at almost no cost, according to a filing filed this Thursday.

HPE disclosed that it granted Oracle a stock purchase option (warrant) in July, enabling it to purchase up to approximately 4.2 million shares of common stock at an exercise price of $0.01 per share. In a filing with the Securities and Exchange Commission (SEC).

The option is active until June 2029 and can be exercised in tranches if Oracle buys HPE networking equipment for AI data centers.

Oracle would pay just $42,000 if it decided to acquire all the shares available through this option.

Based on data collected at 1:15 p.m., the 4.2 million shares had an estimated market value of $210 million. Even though the company posted record quarterly revenue and increased its fiscal-year guidance while reporting its third-quarter results. Shares slid 3% on Thursday afternoon as investors considered its cautious outlook.

Due to the rising demand for AI infrastructure, HPE recorded record sales of $12.2 billion in its most recent quarter, a 34% year-over-year rise. Additionally, the company increased its expectation for full-year revenue growth to a range of 34% to 37%.

Similar to HPE, Oracle’s revenue is growing quickly due to demand for its cloud and AI infrastructure; in its fiscal year 2026. It reached a record $67.4 billion. Oracle’s cloud infrastructure grew by over 90% and cloud applications increased by 10% in the most recent quarter, driving a 47% increase in cloud services revenue to $9.9 billion.