OpenAI and Oracle ink massive $300B cloud deal. Is this an AI bubble?

The AI infrastructure race isn’t just between AWS, Azure, and GCP anymore. Oracle just forced its way into the conversation with numbers too big to ignore. Oracle's FY2026Q1 results sent the stock soaring 36%: - Projection of $114B in revenue by 2029 - a 14x increase in growth! - $35B in CapEx in FY26 - $300B deal with OpenAI. OpenAI's current annualized revenue is ~$14B/yr (WSJ) - Investing $5B over five years in the UK to expand AI infrastructure, GenAI services, and capabilities for government and defense Oracle is leaning into AI inference at scale and is making a bet that inference is where the majority of enterprise value will be created as customer expand their GPU footprint. For enterprises, implications are big: 1. More options beyond AWS/Azure/GCP for AI workloads, expanding cloud flexibility 2. Rising pressure on CIOs and product leaders to align AI strategy with infrastructure economics 3. More thoughtful consideration is needed when selecting the appropriate AI model + infrastructure for the product being built https://lnkd.in/gqeiyQqF https://lnkd.in/gpcwAKFY

Oracle sent its shares soaring after markets closed yesterday after reporting that it signed multiple multi-billion-dollar contracts with several customers. Now, we have an idea of who those customers might be. Oracle signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power over a span of about five years, according to reporting from The Wall Street Journal Journal. OpenAI would start purchasing this compute in 2027. If the WSJ’s reporting is correct, this would be one of the largest cloud contracts ever signed. OpenAI and Oracle did not respond to a request for confirmation or comment. https://lnkd.in/e-tENZB8 #OpenAI #Oracle #CloudComputingDeal

OpenAI & Oracle Forge Historic Cloud Deal: $300B Deal Underpins AI Ambitions OpenAI is reportedly set to purchase $300 billion worth of computing power from Oracle over the next five years, starting in 2027. This mega-deal is part of Project Stargate, the broader $500B initiative involving SoftBank and Oracle to build massive AI-ready data center capacity. It signals a major shift: OpenAI continues to diversify beyond Microsoft Azure, and Oracle strengthens its position dramatically in AI cloud infrastructure. #AI #CloudComputing #ProjectStargate #OpenAI #Oracle #TechDeals #AIInfrastructure #DigitalTransformation

🚀 The $300 Billion Bet: OpenAI x Oracle 🤯 History just got made. OpenAI has signed a $300B, 5-year cloud deal with Oracle — the largest cloud computing contract ever. ⚡ Requires 4.5 GW of power (two Hoover Dams!) 📈 Oracle’s stock soared 40% in a day 💸 Larry Ellison’s net worth jumped $100B overnight But here’s the twist: OpenAI expects to lose $44B before 2029 Oracle is piling on debt to build data centers This is more than business — It’s a civilizational wager on the future of AI. Will this be AI’s Manhattan Project moment... or the dot-com bubble of our era? 💭

OpenAI & Oracle’s Cloud Deal OpenAI has signed a $300 billion, five-year deal with Oracle to purchase AI computing power starting around 2027. This deal is part of OpenAI’s Stargate initiative. Oracle will provide the cloud capacity and data centers to meet the demand. This announcement caused Oracle’s stock to surge, showing how big the market believes this shift will be. 🔗 Read more: https://lnkd.in/gAAK3Uqm #AIInfrastructure #OpenAI #Oracle #CloudComputing #TechDeals #FutureOfAI

openai just signed a $300B cloud deal with oracle - oracle’s biggest since 1992. this got me curious, how does a <$12B revenue company swing a deal 30x its size? looked into it, dropped my first substack- tl;dr for those skipping the blog: >> it’s a five-year, usage-based deal starting 2027 - no $300B check today. >> oracle has to build new ai infra (data centers, chips, power); all future-facing. >> contract locks in oracle’s $455B backlog, targets $144B cloud by 2030 from ~$18B now. >> openai secures long-term compute; pays as it uses. >> basically, openai is reserving future ai capacity - not dropping $300B now.

OpenAI and Oracle Strike $300 Billion Dollar Deal OpenAI has struck a monumental deal with Oracle, as reported by The Wall Street Journal, committing to purchase $300 billion worth of computing power over a five-year period. This agreement, which surpasses OpenAI's current revenue, stands as one of the most lucrative cloud contracts ever inked. The deal is scheduled to commence in 2027, coinciding with escalating apprehensions surrounding a looming AI bubble. In response to this development, Oracle experienced a significant surge in shares on Wednesday, fueled by its remarkable growth in cloud computing. By midday, Larry Ellison, the co-founder of Oracle, emerged as a formidable contender to Elon Musk's position as the wealthiest individual. #AI #CloudComputing #TechnologyInnovation Link to Full Article: https://lnkd.in/gGKyKRcR

Oracle’s AI-cloud backlog exploded 359% to $455B. In just one quarter, Oracle signed four multi-billion-dollar deals, including a $30B annual contract with OpenAI starting in 2028. - Cloud revenue is forecast to surge from $18B today to $144B by 2030 - Oracle is a founding partner in Stargate AI, a $500B infrastructure initiative with OpenAI and SoftBank - Shares are up nearly 30% this week, adding $200B in market value The message is clear: Oracle isn’t just riding the AI wave, it’s building the infrastructure that powers it. (Photo illustration by Cheng Xin/Getty Images)

OpenAI just signed a $300 billion cloud deal with Oracle over 5 years. That's $60 billion per year. For context, Oracle's entire 2024 revenue was $53 billion. Here's what nobody's talking about: → Microsoft just got dumped as OpenAI's exclusive cloud partner → Oracle needs to build entire data centers from scratch for this → This deal is bigger than most countries' defense budgets Real talk: I've watched companies promise massive infrastructure builds before. Oracle's current cloud capacity couldn't handle 10% of this workload today. The kicker? No official confirmation yet. Just "people familiar with the matter." Either this reshapes the entire cloud industry or it's the most expensive vapor announcement in tech history. What's your take - game changer or overhyped deal that falls apart in year two? 👇 #OpenAI #Oracle #CloudComputing #Microsoft #TechDeals

Oracle signed a $300 billion cloud deal with OpenAI, and that news made Larry Ellison the world's richest person (He owns 43% of the company) Some lessons you can take away from this: - We're going to need a lot more data centers, and a lot more energy - The secret to being the world's richest person is to invent the concept of databases - Larry Ellison will cease to be the world's richest person after he forgets to shut down an OCI compute instance and gets a surprise $120 billion bill Free advice on that second point!