Commitments and Contingencies |
3 Months Ended |
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Aug. 31, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Commitments
Customer Contracts
During the three months ended August 31, 2026, the Company entered into GPU services agreements with two separate customers, both providing for a three-year committed service term, with aggregate contracted revenues of $2.7 billion. In order to fulfill the deployments under these customer contracts, the Company is contractually committed to project-specific capital expenditures of approximately $2.3 billion during the twelve-month look-forward period, which includes the purchase obligations as described below. These deployments are subject in part to the Company’s ability to obtain financing and to satisfy customary development, construction and operational conditions and milestones. Failure to satisfy these conditions or meet these milestones could result in penalties or entitle the Company’s customers to credits or to termination rights under such contractual arrangements.
Purchase Obligations
The Company routinely purchases components and equipment from a variety of suppliers. Purchase obligations are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
The Company had purchase obligations primarily for purchases of its AI infrastructure totaling $2.0 billion as of August 31, 2026, which are expected to be paid within one year. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations.
The Company has financing and operating lease commitments totaling $108.4 million payable over the lease terms of its equipment and data center and office space leases as disclosed in Note 15. Leases.
Loss Contingencies
From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of August 31, 2026, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company’s condensed consolidated operations. There are also no legal proceedings in which any of the Company’s management or affiliates is an adverse party or has a material interest adverse to the Company’s interest.
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