OpenAI and Oracle Ink $30 Billion Data Deal
OpenAI has reportedly signed a massive $30 billion multi-year data center services agreement with Oracle, according to The Wall Street Journal. The deal was confirmed by OpenAI CEO Sam Altman via a post on X and a blog entry, though he did not mention the exact financial figure. TechCrunch also covered the development.
Under the agreement, OpenAI will receive nearly 4.5 gigawatts of power — equivalent to the output of two Hoover Dams — enough to supply electricity to approximately four million homes. The initiative is part of a large-scale infrastructure project known as “Stargate,” in which Oracle, OpenAI, and SoftBank are reportedly investing $500 billion to build advanced data centers. However, SoftBank is not involved in this specific $30 billion deal.
The first phase of the project, Stargate-I, is currently under construction in Abilene, Texas. While this deal represents a major revenue stream for Oracle, the construction and operation of the facility will demand significant financial and energy resources.
Notably, OpenAI recently disclosed that its annual revenue has reached $10 billion, nearly doubling from last year’s $5.5 billion. Yet, the yearly value of this Oracle agreement alone is nearly three times the company's current revenue.
