OpenAI struck a five-year deal with Oracle to purchase $300 billion in computing power beginning in 2027, according to the Wall Street Journal. The contract will require 4.5 gigawatts of power capacity—more than two Hoover Dams—and is seen as vital to overcoming shortages constraining OpenAI’s rollout of products and new models. Oracle reported $317 billion in future revenue commitments last quarter, sending its stock up more than 40%. The deal strengthens OpenAI’s Stargate data center initiative, reducing reliance on Microsoft for computing resources. Oracle’s growth now mirrors Nvidia’s AI-fueled trajectory, with projections of $114 billion in cloud infrastructure revenue by fiscal 2029. The agreement carries risks as OpenAI generates roughly $10 billion annually, far below the $60 billion per year owed under the contract, and Oracle is expected to take on debt to fund chip purchases. Oracle stock rose 2.03% to $335.00 in premarket trading on Thursday.
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