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OpenAI has agreed to purchase $300 billion worth of computing power from Oracle over five years; this is one of the largest cloud computing agreements ever signed, and it is set to begin in 2027.
The contract is linked to the broader Stargate project, a $500 billion artificial intelligence infrastructure initiative announced in early 2025 by OpenAI, Oracle, and Japan’s SoftBank, the Wall Street Journal reported.
As part of Stargate, the companies had agreed in July to build data centers with a combined capacity of 4.5 gigawatts.
Beyond cloud services, OpenAI is reportedly backing a $10 billion contract with semiconductor manufacturer Broadcom to develop its own AI chips.
These chips would provide an alternative to reliance on existing suppliers such as Nvidia, which has faced growing demand constraints amid the global surge in AI adoption.
Oracle’s Chief Executive Officer, Safra Catz, told investors that three unnamed firms signed four multi-billion-dollar contracts in the first quarter of the year.
She said this trend has lifted Oracle’s cloud infrastructure revenue by 77% compared with 2024.
Overall, the company reported more than $317 billion in future contract revenue during the quarter, which pushed its stock higher and contributed to Chairman Larry Ellison briefly becoming the world’s richest person.
OpenAI is expected to generate $12.7 billion in revenue this year, according to its latest financial report.
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