The deal stipulates that OpenAI will buy computing power from Oracle starting in 2027
In sum – what to know:
$300B cloud deal signed – OpenAI will buy computing power from Oracle starting in 2027, one of the largest cloud agreements ever.
Stargate expands infrastructure – The $500B project includes 4.5 GW of new data centers..
Oracle revenue surges – Cloud infrastructure sales rose 77%, pushing future contract value to $317B and boosting investor confidence.
OpenAI has signed a $300 billion agreement with Oracle to secure computing power over five years, starting in 2027, in what is considered one of the largest cloud contracts to date.
The deal forms part of Stargate, a $500 billion AI infrastructure initiative announced earlier this year by OpenAI, Oracle, and Japan’s SoftBank, according to the Wall Street Journal.
As part of Stargate, the companies plan to build data centers with 4.5 GW of capacity, marking one of the most ambitious infrastructure projects in the sector.
OpenAI is also pursuing a $10 billion partnership with Broadcom to develop custom AI chips, aiming to reduce dependence on Nvidia, which has faced supply constraints amid surging demand for AI hardware.
Oracle, meanwhile, recently reported strong quarterly results. Cloud infrastructure revenue rose 77% year-over-year, supported by several multi-billion-dollar customer contracts. The company disclosed over $317 billion in future contract revenue.
The AI chipmaker expects to generate $12.7 billion in revenue in 2025, underscoring the scale of AI adoption and investment across the industry.
