OpenAI and Oracle have entered into a significant agreement to acquire $300 billion in computing power over a period of approximately five years, marking one of the largest cloud computing deals in history, as reported by the Wall Street Journal.
In July, the two companies announced a partnership aimed at developing data centers with a capacity of 4.5 gigawatts as part of the broader Stargate project, which also includes Softbank and former President Trump. However, specifics regarding OpenAI’s financial commitments for these data centers were not disclosed. The contract is set to commence in 2027.
During a quarterly earnings call on Tuesday, Oracle CEO Safra Catz revealed that three undisclosed companies signed four multi-billion-dollar contracts in the first quarter. Catz noted that this trend contributes to a 77 percent increase in Oracle’s cloud infrastructure revenue this year. Additionally, Oracle reported over $317 billion in future contract revenue during Q1, a figure that positively impacted share prices and raised the profile of Chairman Larry Ellison, placing him among the world’s wealthiest individuals.
This partnership and contract signify a major development in cloud computing and data infrastructure, particularly in light of the growing demand for advanced computing resources. The implications of such a substantial financial commitment by OpenAI and its impact on the industry remain to be seen.
Source: https://www.theverge.com/ai-artificial-intelligence/776170/oracle-openai-300-billion-contract-project-stargate