OpenAI just locked in one of the biggest cloud computing deals in history - a staggering $300 billion contract with Oracle over five years. The massive agreement officially puts a price tag on the AI company's piece of the Project Stargate infrastructure buildout, with computing power starting to flow in 2027. It's a deal so big it sent Oracle's stock soaring and catapulted Larry Ellison to the world's richest person spot.
The numbers are almost too big to comprehend, but OpenAI just signed what might be the largest cloud computing deal in corporate history. The AI powerhouse has committed to purchasing $300 billion in computing power from Oracle over the next five years, according to reporting from the Wall Street Journal.
The deal finally puts concrete financials behind the Project Stargate announcement that made headlines in January. Back then, OpenAI, Oracle, SoftBank, and even President Trump revealed plans for data centers worth 4.5 gigawatts of power, but the financial details remained locked away. Now we know OpenAI is betting its entire future on this infrastructure play, with the contract kicking off in 2027.
When Oracle CEO Safra Catz reported quarterly earnings on Tuesday, she dropped hints about massive deals brewing. "Three unnamed companies had signed four multi-billion-dollar contracts" in Q1 alone, she told investors. Those contracts are driving Oracle's cloud infrastructure revenue up a whopping 77 percent this year. The company added more than $317 billion in future contract revenue during the quarter - a figure that sent Oracle shares rocketing and pushed Chairman Larry Ellison past Elon Musk to become the world's richest person.
But here's what makes this deal even more remarkable - OpenAI is committing to spend nearly 24 times its expected annual revenue on computing infrastructure alone. The company reportedly projects $12.7 billion in revenue for this year, making this Oracle contract a massive bet on exponential growth ahead.
