OpenAI and Oracle sign $300B computing deal, expanding AI infrastructure

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

🚀 OpenAI has just signed a historic $300 billion deal with Oracle for computing power over the next five years! This unprecedented agreement, requiring a whopping 4.5 gigawatts of power capacity, marks one of the largest cloud contracts ever. 📈 Following the announcement, Oracle's stock soared 43%, boosting Larry Ellison's fortune closer to $400 billion! 💰 As OpenAI faces challenges in scaling its operations and reducing reliance on Microsoft, this partnership could redefine the landscape of AI infrastructure. With an average annual expenditure of $60 billion, the stakes have never been higher! Stay tuned as we watch this game-changing collaboration unfold! #OpenAI #Oracle #CloudComputing #AIEvolution #TechNews

📌 Who Benefits Most From the $300B Oracle — OpenAI Deal, and What’s the Hidden Meaning What’s Known: OpenAI signed a $300B multi-year deal with Oracle to secure massive cloud computing resources over the next 5 years. Part of Project Stargate, aiming to build hyperscale data centers with a capacity of ~4.5 GW. 🔍 Who Benefits the Most Oracle — Locks in guaranteed revenue for years ahead, strengthening financial predictability. — Gains a massive competitive advantage in the cloud infrastructure war against AWS, Microsoft, and Google. — Investors are already pushing Oracle closer to the $1T market cap. OpenAI — Secures long-term access to reliable computing infrastructure — critical for scaling AI models. — Diversifies beyond Microsoft Azure, reducing vendor dependency and distributing operational risks. AI & Cloud Investors — The deal validates the explosive growth of AI compute demand, boosting valuations for companies enabling large-scale infrastructure. ⚠️ The Hidden Meaning & Key Risks — The $300B figure is likely cumulative over several years, structured across “ramp schedules” and regional phases, rather than an upfront payment. — OpenAI isn’t profitable yet and expects positive cash flow only by around 2029. — Some of the spend may rely on credit facilities, equity financing, or pay-as-you-go models. If GPU costs, energy prices, or competition shift, the deal structure could change significantly. ✅ My Take This is a huge strategic win for Oracle — positioning it as one of the most critical infrastructure providers in the AI race. For OpenAI, this deal secures survival and scalability but also locks them into aggressive spending commitments. The headline number — $300B — is as much about signaling power as it is about real cash flows. The success of this partnership depends on whether AI adoption accelerates fast enough to justify the scale of compute investment. #Oracle #OpenAI #Stargate #CloudComputing #AIInfrastructure

The surprise $300B, five-year deal with Oracle revealed OpenAI’s massive compute appetite—and reignited investor interest in Oracle—despite lingering questions around cost, power, and infrastructure. 📌 Full story: https://lnkd.in/eUDJTHyW Source: TechCrunch

The Wall Street Journal just broke news that Oracle and OpenAI just inked a $300B cloud computing deal which is among the biggest in history. What an incredible follow-up to yesterday's Oracle quarterly financial release! The interest aspect to this is how OpenAI will pay for it given that they have recently come out saying they expect $115B in negative cash flow over the next two years. What do you think? #management #venturecapital #privateequity #capitalmarkets #ai #aifinance https://lnkd.in/gYResWuv

One of the biggest cloud deals in history just dropped: OpenAI + Oracle = $300 billion. OpenAI has signed a contract to purchase $300B worth of computing power over five years from Oracle — starting in 2027. That’s more than 2 Hoover Dams’ worth of power capacity (4.5 gigawatts!), fueling OpenAI’s AI ambitions under its Stargate data center strategy. Key takeaways: ·      Scale at all costs: OpenAI is betting that ChatGPT’s explosive growth will continue, justifying one of the largest infrastructure investments ever. ·      Data center gold rush: Oracle will build facilities across the U.S. (Wyoming, Texas, Pennsylvania, Michigan, New Mexico) to support this demand. ·      High-risk, high-reward: OpenAI currently generates ~$10B/year in revenue — far less than the $60B/year it will need to cover this contract. Oracle, meanwhile, is concentrating a massive chunk of future revenue on one customer. ·      Market shockwaves: Oracle’s stock surged 40%+ on the news, pushing Larry Ellison’s net worth near $400B, rivaling Elon Musk. This deal underscores the compute bottleneck facing AI labs. Microsoft may have been OpenAI’s exclusive compute partner in the past, but shortages and scaling pressure forced diversification — and Oracle seized the moment. Full article here: Oracle, OpenAI Sign $300 Billion Cloud Deal – WSJ (https://lnkd.in/e9x7wgWm) What do you think — is this a bold bet that cements OpenAI’s leadership, or a compute bubble waiting to burst? #AI #OpenAI #Oracle #CloudComputing #AIInfrastructure #Stargate

🚀 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? 💭

This week, OpenAI and Oracle shocked the markets with a surprise $300 billion, five-year agreement, part of a surge of new business that sent the cloud provider’s stock skyrocketing. But maybe the markets shouldn’t have been taken by surprise. The deal is a reminder that, despite Oracle’s legacy status, the company still plays a major role in AI infrastructure. On the OpenAI side, the agreement was more revealing than the lack of details suggest. For one, the startup’s willingness to pay so much for compute provides a measurement of the startup’s appetite — even if it’s unclear where the electricity to power said compute is coming from or how it will pay for it. https://lnkd.in/eUDJTHyW #OpenAI #Oracle #TheDeal

Oracle and OpenAI ink $300B deal The Wall Street Journal reports that, citing anonymous sources, #OpenAI plans to purchase $300 billion in computing power from #Oracle over the next five years, surpassing its current revenue and marking a major cloud deal. Starting in 2027, the agreement raises concerns about the AI bubble. Oracle's shares surged after the company reported strong cloud growth, and Larry Ellison briefly became the world's wealthiest person, overtaking #ElonMusk. Why it matters: 🔹 Oracle secured multiple massive cloud deals, including a reported $300 billion contract with OpenAI. 🔹 Forecast: Cloud revenue rising from $18B today to $144B by 2030. Oracle stock surged 43%, while AI companies such as NVIDIA, Broadcom, and Arm also experienced significant gains. Analysts described the quarter as “truly historic.” We are witnessing a seismic shift in how computing, cloud, and AI will influence the next decade. #AIRevolution #ArtificialIntelligence #CloudComputing #TechTrends #AIInfrastructure #FutureOfTech https://bit.ly/3Vfu9xo [link to the article]

OpenAI's $300 billion deal with Oracle seems impossible. It's for cloud computing that doesn't exist yet, using revenue OpenAI doesn't have. Here's why it's one of the most audacious and logical moves in the #AGI race. This isn't a normal purchase. It's a massive, two-sided bet on the future: - OpenAI's Bet on Scale: They are betting that the path to AGI will require an astronomical amount of computing power. By signing this deal for infrastructure to be delivered starting in 2027, they are securing their supply chain for the 2030s, locking in capacity before rivals can. - Oracle's Bet on Demand: This single deal gives Oracle the guaranteed, long-term demand it needs to justify a colossal investment in building new AI-focused data centers. It's a de-risked expansion, with their anchor tenant already signed. - It's a "Pay-As-You-Grow" Bet: The $300B isn't a lump sum. It's a forward-looking contract where costs are tied to infrastructure delivery and actual consumption over many years. This isn't a deal about 2025. It's a chess move for 2030 and beyond, with both companies co-investing in a future they believe is inevitable. #AI #OpenAI #Oracle #CloudComputing #AGI #BusinessStrategy #TechDeals #FutureOfTech