Oracle, OpenAI sign $300B cloud deal: Report

OpenAI inks a $300B contract with Oracle to purchase cloud computing capacity over five years

OpenAI signed a $300 billion contract with Oracle to purchase cloud computing capacity over five years, the Wall Street Journal reported, citing people familiar with the matter.

The report said the deal exceeds the current revenue of the ChatGPT developer and ranks among the largest cloud-computing contracts ever signed.

Sources told the paper the agreement will take effect in 2027 but carries risks for both sides, as OpenAI has yet to turn a profit since its founding, while Oracle would be tying a significant portion of its future revenue to a single client.

Oracle previously hinted at the agreement in a regulatory filing in June, when it referred to a cloud services contract expected to add more than $30 billion annually to its revenue starting in 2027.

The deal would require computing power consuming about 4.5 gigawatts of electricity, equivalent to the output of more than two Hoover Dam–sized projects or the usage of around four million homes.