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OpenAI, Oracle sign $300 billion computing deal, WSJ reports
OpenAI's $300 billion, five-year deal with Oracle secures 4.5 gigawatts of AI computing capacity, reflecting the rising costs and scale of AI infrastructure expansion.
- OpenAI signed a $300 billion, five-year deal with Oracle to purchase compute power starting in 2027, reported last week by the WSJ.
- The deal followed OpenAI’s move to diversify cloud providers beyond Microsoft Azure and its initial use of Oracle compute since summer 2024.
- Oracle's cloud infrastructure business, currently $18 billion annually, gained multiple multi-billion dollar contracts, driving its stock up by about 35%.
- Oracle agreed to provide five gigawatts of compute—that equals two million GPUs—powering generative AI workloads needed by OpenAI’s growing demand.
- This massive contract boosts Oracle’s position in the AI cloud market and lifted CEO Larry Ellison to the world’s richest person with a $405 billion net worth.
76 Articles
76 Articles
OpenAI turns to Oracle in historic $300 billion cloud partnership
OpenAI has struck a landmark deal with Oracle to buy $300 billion in computing power over five years, highlighting both the explosive rise of AI and the growing financial risks around it. People familiar with the matter told The Wall Street Journal that the contract – one of the largest...Read Entire Article
It is one of the most important deals in the cloud ever recorded
Famed Short Seller Jim Chanos Targets Oracle For Old 'Accounting Issues,' Says ORCL's $300 Billion Deal Backlog With OpenAI Doesn't Begin Till 2027 - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Oracle (NYSE:ORCL)
Famed short-seller Jim Chanos has publicly questioned the quality of Oracle Corp.'s (NYSE:ORCL) massive new backlog, arguing a cornerstone $300 billion deal with OpenAI is risky, years away from starting, and reminiscent of the company’s past accounting controversies. Check out ORCL's stock price here. Jim Chanos Questions ORCL’s Accounting Principles The critique, delivered in a series of posts on X, aims to deflate the investor euphoria that s…
Oracle specializes in software and services for databases. It has just signed a $300 billion contract with OpenAI.
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