OpenAI Signs $300 Billion Cloud Deal with Oracle, Marking One of the Largest in History

Oracle’s stock surged after trading hours as news broke of a potential landmark deal with OpenAI. According to the Wall Street Journal, the artificial intelligence leader has reportedly agreed to purchase $300 billion worth of computing power from Oracle over the next five years. The arrangement is expected to kick off in 2027 and would represent one of the largest cloud contracts ever signed in the tech industry.

Neither company has confirmed the report. Oracle declined to comment, while OpenAI did not respond to media requests. However, the size of the alleged contract—dwarfing typical enterprise cloud deals—highlights just how much computing power is needed to fuel the next generation of AI systems.

The two companies are not strangers to each other. OpenAI began tapping Oracle’s infrastructure in the summer of 2024 as part of a broader push to diversify its cloud providers. In January, the company moved further away from its long-time exclusive partnership with Microsoft Azure, signaling a strategy to spread workloads across multiple platforms.

This diversification coincides with OpenAI’s involvement in the massive Stargate Project, an initiative with SoftBank and Oracle aimed at investing $500 billion in domestic data center projects over the next four years. The partnership underscores the race to build out enough capacity to support advanced AI training and deployment at a global scale.

OpenAI’s appetite for compute extends beyond Oracle. Earlier this spring, Reuters reported that OpenAI also inked a cloud deal with Google, even as both firms compete for dominance in the artificial intelligence market. The rumored Oracle agreement, if confirmed, would cement OpenAI’s strategy of securing vast, multi-vendor infrastructure to power its rapid growth.

source: techcrunch