According to the WSJ, OpenAI has agreed to purchase $300 billion worth of compute power from Oracle over about five years, beginning in 2027. If confirmed, the agreement would mark one of the largest cloud contracts ever signed.
Oracle has been building its relationship with OpenAI since mid-2024, when the AI firm began tapping its infrastructure, moving away from exclusively relying on Microsoft Azure.
In January, OpenAI, Oracle, and SoftBank unveiled the $500 billion Stargate Project, which aims to build massive domestic data centres. In July, OpenAI and Oracle announced plans for facilities with 4.5 gigawatts of power as part of the initiative.
The reported $300 billion contract is the latest sign of OpenAI’s aggressive expansion to secure computing power. Reuters earlier reported that the AI company also signed a cloud deal with Google this year, even as the two firms compete fiercely in artificial intelligence.
Separately, OpenAI is said to be behind a $10 billion agreement with semiconductor maker Broadcom to design custom AI chips.
During Tuesday’s earnings call, Oracle CEO Safra Catz said three unnamed customers had signed “four multi-billion-dollar contracts” in the first quarter, boosting the company’s cloud infrastructure revenue by 77% year-on-year.
Oracle added more than $317 billion in future contract revenue in Q1, a figure that sent its stock soaring and pushed Chairman Larry Ellison to the top of the world’s richest person list.