OpenAI and Oracle Seal $300 Billion Cloud Computing Collaboration
OpenAI and Oracle have signed one of the largest cloud computing agreements in history, valued at nearly $300 billion, Reuters reported. The deal will provide OpenAI with the computing power necessary to run its ambitious “Project Stargate” over the next five years.
The initiative involves building massive data centers requiring approximately 4.5 gigawatts of electricity. SoftBank and U.S. President Donald Trump had already been associated with the project, but according to the Wall Street Journal, OpenAI will now pay Oracle a total of $300 billion under the agreement.
This partnership is expected to inject fresh momentum into OpenAI’s artificial intelligence operations. The company is projected to generate about $12.7 billion in revenue this year. In parallel, OpenAI has entered into a separate $10 billion agreement with Broadcom to develop its own AI chips.
Oracle, meanwhile, has already seen its cloud business grow by 77 percent. The colossal deal has boosted its stock value and propelled Chairman Larry Ellison into the ranks of the world’s wealthiest individuals.
The agreement underscores how the future of AI technology hinges on vast computing capacity and massive investment.
