OpenAI has entered a $300 billion cloud computing agreement with Oracle, as reported by the Wall Street Journal. The five-year contract is scheduled to begin in 2027 and is described as one of the largest cloud deals ever.

This development follows the companies’ earlier announcement in July about a partnership to build data centers under the broader Stargate project. The previous announcement did not disclose OpenAI’s financial commitment.

One of the Largest Cloud Contracts in History

The Wall Street Journal reported that OpenAI and Oracle signed a deal “to purchase $300 billion in computing power over roughly five years.” This large-scale agreement places significant emphasis on long-term access to computing infrastructure.

OpenAI’s involvement in Project Stargate also includes collaboration with SoftBank and former President Trump, though the companies had not shared payment details until now.

Oracle’s Q1 Surge Linked to Multi-Billion-Dollar AI Deals

During Oracle’s recent quarterly earnings report, CEO Safra Catz stated that three unnamed companies had signed “four multi-billion-dollar contracts” in the first quarter. She described this as part of a broader trend driving Oracle’s cloud infrastructure growth.

The company reported a 77 percent increase in cloud infrastructure revenue this year. In total, Oracle said it added over $317 billion in future contract revenue during Q1.

Project Stargate: 4.5-Gigawatt Data Center Development

In July, OpenAI and Oracle announced plans to build data centers with 4.5 gigawatts of power capacity. This effort is part of Project Stargate, which was introduced alongside SoftBank and President Trump. The companies had not previously revealed how much OpenAI intended to invest.

The $300 billion contract now clarifies OpenAI’s financial role in the project and reflects the scale of infrastructure being planned.

OpenAI’s Financial Growth and Chip Development Efforts

According to the report, OpenAI is also likely behind a $10 billion agreement with semiconductor company Broadcom to design its own AI chip. This move aligns with the company's growing technological demands.

OpenAI is projected to reach $12.7 billion in revenue this year, a figure that supports its large-scale infrastructure and hardware investments.

PHOTO: UNSPLASH

This article was created with AI assistance.