OpenAI has signed a record-breaking agreement with Oracle to purchase $300 billion worth of computing power over five years, the Wall Street Journal reported. The deal ranks among the largest cloud computing contracts ever signed.
In July, OpenAI and Oracle announced a partnership to build 4.5 gigawatts of data center capacity under the broader Stargate project, alongside SoftBank and President Donald Trump. At the time, financial details were not disclosed. According to the report, OpenAI’s contract will take effect in 2027.
The Journal also reported that OpenAI is likely behind another $10 billion contract with Broadcom to design custom AI chips. The company, which expects $12.7 billion in revenue in 2025, has been expanding its hardware and infrastructure investments to meet growing AI demand.
Oracle CEO Safra Catz said during quarterly earnings that three unnamed companies signed “four multi-billion-dollar contracts” in Q1, fueling a 77% rise in Oracle’s cloud infrastructure revenue this year. The company added more than $317 billion in future contract revenue, which drove its stock price sharply higher and propelled CTO Larry Ellison to the top of the world’s richest person list.
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