OpenAI and Oracle Seal Historic Cloud Partnership
▼ Summary
– Oracle’s shares surged after it announced signing multiple multi-billion-dollar contracts with several customers.
– The Wall Street Journal reported Oracle signed a deal with OpenAI for $300 billion in compute power over five years, starting in 2027.
– This contract could be one of the largest cloud agreements ever, though Oracle and OpenAI declined to comment on the report.
– OpenAI began using Oracle’s compute services in summer 2024 and has been diversifying away from exclusive reliance on Microsoft Azure.
– OpenAI is also involved in the Stargate Project with SoftBank and Oracle, investing $500 billion in domestic data centers over four years.
Oracle’s stock surged following the announcement of several multi-billion-dollar cloud agreements with major clients, and one of those key partners has now been identified. OpenAI has reportedly entered into a historic $300 billion cloud computing arrangement with Oracle, set to begin in 2027 and span approximately five years. This colossal deal, if confirmed, would rank among the largest cloud contracts ever recorded, signaling a massive expansion in AI infrastructure investment.
Neither Oracle nor OpenAI provided official comments regarding the reported agreement, though the partnership aligns with a broader strategic shift for the AI research organization. Earlier this year, OpenAI began diversifying its cloud infrastructure beyond its long-standing exclusive reliance on Microsoft Azure, initiating its collaboration with Oracle in mid-2024.
This move coincides with OpenAI’s participation in the ambitious Stargate Project, a joint venture with SoftBank and Oracle aimed at investing $500 billion in U.S.-based data center development over the coming four years. The scale of these investments underscores the extraordinary computational demands of cutting-edge artificial intelligence research and development.
Even amid fierce competition in the AI sector, OpenAI’s compute requirements appear insatiable. Earlier this spring, Reuters reported that the company also secured a cloud agreement with Google, demonstrating its willingness to collaborate across rival platforms to secure essential resources. This multi-vendor approach highlights the critical importance of scalable, high-performance computing in the ongoing race for AI innovation.
(Source: TechCrunch)
