OpenAI Signs $30 Billion Annual Cloud Deal with Oracle
OpenAI has signed a record-breaking $30 billion annual cloud services agreement with Oracle, potentially the largest cloud deal in history. The contract, set to start generating revenue in fiscal year 2028, involves OpenAI leasing approximately 4.5 gigawatts of data center capacity from Oracle across multiple U.S. sites.
This agreement is a central component of OpenAI’s Stargate initiative—a joint venture with SoftBank focused on developing next-generation AI infrastructure. The scale of the deal is expected to nearly triple Oracle’s $10.3 billion cloud infrastructure business, firmly positioning Oracle as a strong competitor to Amazon Web Services (AWS) and Microsoft Azure.
To support the agreement, Oracle plans to build several data centers in states including Texas, Michigan, Wisconsin, and Pennsylvania. These facilities will cater to the unprecedented computing demands of advanced AI systems.
The deal also reflects OpenAI’s efforts to diversify beyond Microsoft Azure, emphasizing the massive infrastructure requirements of leading-edge AI development.
Source: Data Center Dynamics