OpenAI has signed one of the biggest cloud computing deals in history with Oracle. According to the Wall Street Journal, the deal is worth $300 billion and will last for five years starting in 2027.
The agreement is part of Project Stargate, a large plan announced earlier this year by OpenAI, Oracle, SoftBank, and former U.S. President Donald Trump to build massive AI data centers. These centers are expected to use up to 4.5 gigawatts of power, though the payment details were not clear until now.
This new deal means OpenAI will use Oracle’s cloud systems to run its AI models, which need huge amounts of computing power. OpenAI is already spending billions elsewhere too, including a reported $10 billion partnership with Broadcom to develop custom AI chips of its own.
For Oracle, this contract is another big win in cloud computing. The company reported strong growth this year, with cloud infrastructure revenue rising 77 percent in the first quarter. Oracle also said it recently signed multiple multi-billion-dollar contracts with other companies, but did not reveal their names.
The announcement has boosted Oracle’s share prices and even made its chairman, Larry Ellison, the world’s richest person.