OpenAI and Oracle have entered into a monumental agreement valued at $300 billion in computing power over a span of approximately five years, ranking as one of the most significant cloud computing deals to date, as reported by the Wall Street Journal.
Back in July, the two companies publicized their collaboration for the construction of data centers with a power capacity of 4.5 gigawatts. This initiative is part of the larger Stargate project, which they had previously announced alongside Softbank and President Trump, though the financial specifics of OpenAI’s investment in these datacenters were not made clear. According to the report, OpenAI’s contractual obligations are set to commence in 2027.
During the announcement of quarterly earnings on Tuesday, Oracle CEO Safra Catz revealed that three undisclosed companies have signed “four multi-billion-dollar contracts” during Q1. She highlighted this trend as a key driver behind Oracle’s projected 77 percent increase in cloud infrastructure revenue this year. In total, the company stated that it secured over $317 billion in future contract revenue in Q1, a staggering figure that not only boosted share prices but also propelled Chairman Larry Ellison to the peak position on the list of the world’s wealthiest individuals.
