Oracle is in the headlines today, as the company has signed a massive deal with AI giant OpenAI. According to the report from the Wall Street Journal, Oracle has secured a $300 billion cloud contract with OpenAI. It is said to be the biggest computing deal ever signed.
With this deal, OpenAI will buy $300 billion worth of computing resources from Oracle over five years, starting in 2027. The investment is part of OpenAI’s Project Stargate to build massive data centers capable of delivering 4.5 gigawatts of power, enough to supply millions of homes. These facilities will support next-generation AI models that require unprecedented computing power.
As soon as the news about the agreement came out, Oracle’s stock surged more than 35%. Its backlog jumped to $455 billion, surpassing Google’s and cementing Oracle’s place among the top global hyperscalers.
However, it’s important to keep in mind that OpenAI is not the only company investing heavily in data centers. Other players like Amazon, Google, Meta, and Microsoft are collectively expected to pour more than $300 billion into AI data center infrastructure by the end of the year. For OpenAI, the Oracle partnership represents a diversification of its cloud strategy, moving beyond its long-standing reliance on Microsoft Azure. Interestingly, the company has also signed deals with Google and secured $10 billion in semiconductor contracts with Broadcom to develop AI chips.
So with all these updates, one thing is clear: all the big tech companies in the world are chasing massive data centers. And with Project Stargate, OpenAI and Oracle are positioning themselves at the center of the next wave of AI innovation.
