"OpenAI will pay Oracle $300 billion over the course of five years to fuel Sam Altman's AI ambitions by providing five gigawatts of compute capacity. At least that's what unnamed sources familiar with the matter tell the Wall Street Journal, which reports that the contract is set to begin in 2027, giving the AI startup a little over a year to figure out how or perhaps who's going to be left holding the bill when it falls due."
"As it stands, OpenAI can't afford the checks it's writing. As of June, the AI flag bearer has annual recurring revenue of $10B. To be clear, that's revenue. The company isn't expected to turn a profit until at least 2029. Perhaps SoftBank is about to open its wallet after reportedly agreeing to chip in $19B to the OpenAI-led Stargate project that aims to build a series of giant AI Datacenters."
OpenAI will pay Oracle $300 billion over five years for five gigawatts of compute capacity, with the contract set to begin in 2027. OpenAI reported $10 billion in annual recurring revenue as of June and is not expected to be profitable until at least 2029. SoftBank reportedly agreed to contribute $19 billion to the OpenAI-led Stargate project to build large AI datacenters. Earlier commitments to add 4.5 gigawatts bring total compute to five gigawatts, potentially adding about two million GPUs and nearly $100 billion in GPU costs, excluding facilities and power. OpenAI plans to develop in-house silicon with Broadcom.
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