OpenAI Inks Massive $300 Billion, 5-Year Cloud Deal with Oracle Starting 2027

Tech giants collide in record-shattering cloud partnership.

Oracle just landed the AI deal of the decade—securing OpenAI's entire cloud infrastructure in a jaw-dropping $300 billion commitment spanning five years. Kicking off in 2027, this isn't just a contract—it's a tectonic shift in cloud computing.

Why Oracle Won

Larry Ellison's empire outmaneuvered AWS and Azure by offering specialized AI infrastructure that OpenAI couldn't refuse. No more generic cloud solutions—this is bespoke silicon meeting bleeding-edge algorithms.

The $300 Billion Question

That number isn't just eye-popping—it's larger than some national GDPs. Wall Street analysts are already calling it 'either visionary or delusional'—because nothing says 'sensible investing' like betting $300 billion on tech that might be obsolete in three years.

AI's New Home

OpenAI bypasses building its own data centers—doubling down on what it does best while Oracle handles the heavy lifting. The partnership signals that even AI titans need specialized infrastructure partners.

This deal doesn't just change cloud computing—it redefines how AI giants scale. And proves that when it comes to tech spending, there's no such thing as too big to fail—only too big to comprehend.

Oracle’s stock jumps, Ellison’s net worth spikes $100B

Oracle revealed in its earnings for the quarter ending August 31 that it had locked in $317 billion in future contract revenue, which includes the OpenAI deal. Shares of the company shot up 42% on Wednesday after the announcement, Cryptopolitan reported.

Safra Catz, the company’s Chief Executive Officer, told analysts the new revenue came from three different contracts signed during the quarter. She didn’t identify the companies involved at the time.

That stock movement pushed Oracle co-founder and Chairman Larry Ellison into a new wealth bracket. His net worth jumped by over $100 billion, putting him close to Elon Musk on the global rich list. Ellison now sits on a personal fortune estimated at $400 billion, thanks in large part to the OpenAI contract.

But the deal comes with major risks. For OpenAI, it means paying an average of $60 billion per year, six times what it currently earns. The company is not yet profitable, and it’s placing a bet that its growth through ChatGPT will continue and lead to adoption across governments, companies, and billions of users.

For Oracle, it means placing a big chunk of its future income on a single partner. To meet its end of the bargain, Oracle will likely have to borrow money to acquire enough AI chips to build and power the required infrastructure.

For years, OpenAI had relied solely on Microsoft to deliver the compute it needed. But supply issues and growing frustration inside the company led to a change. OpenAI recently received waivers that allow it to seek new providers, clearing the way for Oracle to step in with a far bigger offer.

While the startup is still working through internal challenges like regulatory investigations and a fierce hiring market, the Oracle deal is its biggest step yet in scaling beyond Microsoft.

The contract assumes that OpenAI’s user base, model performance, and commercial reach will all grow significantly over the next decade. But with regulators in two U.S. states now reviewing its structure as a for-profit, and ongoing tensions with Microsoft, the next few years will test whether this bet pays off—or burns both companies.

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