OpenAI Inks $300B Oracle Cloud Deal Amid Compute Crunch

OpenAI has committed to one of the largest cloud infrastructure deals in history, signing a $300 billion, five-year contract with Oracle set to commence in 2027. The agreement dwarfs the AI firm's current $10 billion annual revenue and signals aggressive expansion plans.

The partnership requires 4.5 gigawatts of energy capacity—enough to power nearly four million homes—as OpenAI seeks to overcome critical compute limitations that have hampered product development. Oracle shares surged 42% following the announcement, adding $100 billion to Larry Ellison's net worth.

This mega-deal supersedes OpenAI's stalled Stargate initiative with SoftBank, now rebranded as an umbrella term for all data center projects. Oracle's latest earnings reveal $317 billion in future contract revenue, including this landmark agreement.