OpenAI CEO Sam Altman has confirmed that his company is the client behind Oracle’s massive $30 billion per year cloud services deal, first disclosed by Oracle in an SEC filing on June 30. While Altman did not confirm the dollar amount, he acknowledged the agreement in a post on X and a company blog published Tuesday.
The Wall Street Journal reported that the deal, which caused Oracle’s stock to hit an all-time high, will supply OpenAI with 4.5 gigawatts of capacity, roughly equivalent to the output of two Hoover Dams. That level of demand has raised eyebrows, as Oracle’s total cloud revenue for fiscal 2025 stood at $24.5 billion across all customers. The agreement with OpenAI alone exceeds that figure.
OpenAI clarified that the deal supports its Stargate data center initiative, first announced in January alongside Oracle and SoftBank. The current $30 billion contract does not involve SoftBank and is tied specifically to the Stargate I site under development in Abilene, Texas.
This is not an instant windfall for Oracle. The data center must still be built, and it will require significant investment in both physical infrastructure and energy resources. Oracle’s CEO Safra Catz stated in June that the company had spent $21.2 billion in capital expenditures over the past year and planned to spend another $25 billion in the current fiscal year, funds largely directed toward data center growth.
Despite its growing footprint, OpenAI reported only $10 billion in annual recurring revenue as of last month, up from $5.5 billion the year before. The Oracle agreement alone represents a financial commitment that exceeds OpenAI’s current revenue by threefold and does not include existing operational costs or other infrastructure deals.