- Oracle will more than double its cloud revenue in FY2028 with a $30 billion deal
- OpenAI's Project Stargate will see $500 billion invested across the US
- The AI firm is set to lease an additional 4.5GW from Oracle
OpenAI has said it is set to lease an additional 4.5 gigawatts of data center power on top of its current portfolio from Oracle to fuel its upcoming Project Stargate – a major initiative to expand its AI data center infrastructure across the United States.
The huge deal is part of OpenAI's $500 billion plan announced in January 2025 alongside major partners including Oracle and SoftBank.
With Oracle CEO Safra Catz recently revealing the company has secured a major contract worth $30 billion in annual revenue, many are beginning to speculate whether OpenAI could be the cloud giant's biggest client.
OpenAI to rent even more data center power from Oracle
Although OpenAI failed to share specific details about Project Stargate, we do know that it centers around a $500 billion investment spanning four years, beginning with an initial $100 billion investment.
We also know that Oracle has plans to build new data centers in Texas, Michigan, Wisconsin and Wyoming, with further sites in New Mexico, Georgia, Ohio and Pennsylvania also potentially on the cards (via Bloomberg), which broadly aligns with Project Stargate's plans to "secure American leadership in AI" and "support the re-industrialization of the United States."
Commenting during the company's fiscal 2025 earnings release – a period when total company revenue rose 8% – Catz wrote: "FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher."
"Oracle is well on its way to being not only the world’s largest cloud application company—but also one of the world’s largest cloud infrastructure companies," Catz added. Oracle has a market cap of $645.98 billion, putting it several paces behind its key multi trillion-dollar hyperscaler rivals.
Oracle did not respond to TechRadar Pro's request for a comment on the mystery $30 billion deal, which is set to come into play in fiscal 2028.
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