Oracle, OpenAI Sign Massive $300 Billion Cloud Computing Deal

The majority of new revenue revealed by Oracle will come from OpenAI deal, sources say

- Berber Jin

OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years, people familiar with the matter said, a massive commitment that far outstrips the startup's current revenue.

The deal is one of the largest cloud contracts ever signed, reflecting how spending on AI data centers is hitting new highs despite mounting concerns over a potential bubble.

The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes.

Oracle shares surged by as much as 43% on Wednesday after the cloud company revealed it added $317 billion in future contract revenue during its latest quarter that ended in Aug. 31. Chief Executive Safra Catz told analysts that it had signed contracts with three different customers during the quarter.

The share price surge increased Oracle Chairman Larry Ellison's wealth by more than $100 billion, pushing him into the range of Elon Musk as the world's richest person, with a net worth of almost $400 billion.