Oracle and OpenAI near $300B cloud deal

Oracle shares have been soaring lately, backed by a string of multi-billion-dollar contracts.

The big buzz: reports suggest Oracle is close to signing a massive deal with OpenAI, worth about $300 billion over five years for computing power. If finalised, this would be one of the largest cloud contracts ever signed, showing how fast OpenAI is scaling up its compute needs.

This isn’t the first time the two have teamed up. OpenAI started using Oracle for compute in mid-2024 and, by January, moved away from relying only on Microsoft Azure as its sole cloud provider.

The partnership is also part of a much bigger play. Back in January, OpenAI, Oracle, and SoftBank announced the $500 billion Stargate Project, aiming to build massive domestic data centres. Then in July, the two revealed plans for facilities with 4.5 gigawatts of power under the initiative.