OpenAI and Oracle sign historic cloud computing deal

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00:00OpenAI and Oracle Sign Historic Cloud Computing Deal

00:04Oracle's stock surged post-market close on whispers of costly contracts.

00:09OpenAI, Sam Altman's AI giant, is reportedly paying $300 billion to Oracle for cloud services,

00:16according to the Wall Street Journal.

00:18That's not a typo.

00:19Three.

00:20Hundred.

00:20Billion.

00:21Over five years.

00:23While servers won't activate until 2027,

00:26this deal could rank among history's largest cloud contracts.

00:30Neither Oracle nor OpenAI confirmed the whispers publicly.

00:35Still, this isn't exactly a surprise.

00:37Since summer 2024, OpenAI has relied on Oracle's infrastructure.

00:41In January, it expanded beyond Microsoft's Azure,

00:44aligning with the $500 billion Stargate project to develop massive U.S. data centers.

00:50And OpenAI isn't only focused on Oracle.

00:53This year, Reuters noted its separate cloud deal with Google,

00:56even as they compete fiercely in the AI field.

00:59Training AI demands vast GPU resources, so dependency isn't an option.

01:04So, Oracle's stock soars and OpenAI spins heavily, igniting intense cloud wars.