"Microsoft, OpenAI's long-term partner and financial backer, has been a key player in supporting the firm through its Azure cloud computing service. But with reports of strained relations between Microsoft and OpenAI gaining traction in recent months, the latter has been looking elsewhere for industry support. In June 2024, a deal between Oracle, Microsoft, OpenAI was announced to provide the latter with "additional capacity". At the time, the company said this was to support "inference and other needs"."
"Oracle is fast emerging as one of the big winners from the increasingly frantic generative AI race. In its most recent earnings report, the company revealed it added upwards of £317 billion in future contract revenue, with OpenAI responsible for a huge chunk of this. Shares surged following the earnings report and Larry Ellison's personal wealth skyrocketed. Elsewhere, the company has made significant gains in areas such as multi-cloud, again driven by surging AI demands."
Oracle will begin a $300 billion contract with OpenAI in 2027 to expand infrastructure supporting OpenAI model compute. Compute power has emerged as a key bottleneck as OpenAI scales AI development, driving the firm to secure multiple deals to meet skyrocketing power demands. Microsoft has been a long-term cloud partner via Azure, but reported strained relations prompted OpenAI to diversify providers. Earlier collaborations include a June 2024 capacity deal with Oracle and Microsoft and a partnership on the $500 billion Stargate Project to build U.S. AI infrastructure. Oracle's earnings credited £317 billion in future contract revenue largely tied to OpenAI, lifting shares and executive wealth while accelerating Oracle's multi-cloud momentum.
Read at IT Pro
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