"Oracle signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power over a span of about five years, according to reporting from the Wall Street Journal. OpenAI would start purchasing this compute in 2027. If the WSJ's reporting is correct, this would be one of the largest cloud contracts ever signed. OpenAI and Oracle did not respond to a request for confirmation or comment."
"Oracle is no stranger to working with OpenAI. OpenAI started tapping Oracle for compute in the summer of 2024. The AI giant also moved further away from exclusively using Microsoft Azure as its only cloud provider in January. This move away from Microsoft was timed with OpenAI's involvement with the Stargate Project, in which OpenAI, SoftBank, and Oracle have committed to invest $500 billion into domestic data center projects over the next four years."
Oracle reported multiple multi-billion-dollar contracts that drove its shares higher after markets closed. Oracle signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power over about five years, with purchases beginning in 2027. If confirmed, the contract would rank among the largest cloud deals ever. OpenAI and Oracle did not respond to requests for comment. OpenAI began tapping Oracle for compute in summer 2024 and reduced reliance on Microsoft Azure in January. That shift coincided with the Stargate Project, in which OpenAI, SoftBank, and Oracle pledged $500 billion for domestic data centers. Reuters also reported an OpenAI cloud deal with Google this spring.
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