Oracle Secures Historic $300B Cloud Deal with OpenAI, Stock Soars 40%

Oracle Corporation (ORCL) has landed a landmark $300 billion cloud infrastructure agreement with OpenAI, according to Wall Street Journal reports. The five-year contract, commencing in 2027, represents one of the largest cloud computing deals ever recorded and signals OpenAI's strategic pivot from Microsoft Azure to Oracle's enterprise-grade infrastructure.

Oracle shares surged 40% Wednesday—their most significant single-day gain since 1999—as investors bet on the company's cloud revenue trajectory. Projections show potential growth from $18 billion this year to $144 billion by 2029. The deal requires 4.5 gigawatts of computing power, equivalent to two Hoover Dams' output, to fuel OpenAI's next-generation AI models.

Co-founder Larry Ellison's net worth ballooned by $88 billion following the rally, briefly making him the world's wealthiest individual. The partnership underscores the intensifying battle for dominance in AI infrastructure, with Oracle emerging as a critical player alongside cloud giants.