OpenAI and Oracle have struck the largest cloud deal ever for $300 billion in the Stargate project
By ForGeeks
OpenAI and Oracle have signed an agreement to deliver computing power worth $300 billion. The contract will run for approximately five years and will start in 2027, becoming one of the largest agreements in the cloud technology sector. This is reported by The Wall Street Journal.
The companies previously announced a partnership in July for the Stargate project with SoftBank to build data centers with a capacity of 4.5 GW. Until now, details about the financial scope of OpenAI’s involvement remained unknown.
The agreement with Oracle complements OpenAI’s other strategic moves, according to media reports. Specifically, the company has contracted with Broadcom for about $10 billion to develop a proprietary artificial intelligence chip.
With the release of its quarterly earnings, Oracle CEO Safra Catz said three unnamed companies signed “four multi-billion-dollar contracts” in the first quarter, boosting cloud revenue by 77% year-on-year. As a result, Oracle’s capitalization rose markedly, and its chairman Larry Ellison temporarily topped the list of the world’s richest people.
The OpenAI and Oracle deal reflects the escalating global race in AI and underscores the companies’ commitment to investing in super-powered computing. However, the contract is not scheduled to launch until 2027, and experts say the market could change significantly in that time.
