Haciyev Reşit 
OpenAI, the creator of ChatGPT, and tech giant Oracle have signed an agreement to purchase $300 billion worth of computing power over approximately five years. This move is seen as a major milestone in the AI and cloud computing sectors.
Deal Details
According to the Wall Street Journal, the agreement will begin in 2027. Under the Stargate project, announced in July, the two companies plan to establish data centers with a total capacity of 4.5 gigawatts. OpenAI has not disclosed how much it will pay for the data centers.
OpenAI, expecting $12.7 billion in revenue this year, may have also signed a $10 billion contract with semiconductor giant Broadcom to design its own AI chip.
Oracle’s Competitive Advantage
This partnership positions Oracle ahead of AWS, Azure, and Google Cloud in competition, establishing the company as a strategic cloud partner for OpenAI. The deal significantly boosts Oracle’s cloud capacity during a period of rapidly growing demand for AI infrastructure, reshaping the power dynamics among tech giants.
Oracle’s Performance and Revenue Growth
Oracle CEO Safra Catz announced in the quarterly earnings report that three unnamed companies signed $4 billion worth of contracts in the first quarter. Catz noted that this trend increased Oracle’s cloud infrastructure revenue by 77% this year. Overall, the company added over $317 billion to future contract revenue in the first quarter. This massive deal has boosted Oracle’s stock price and propelled CEO Larry Ellison to the top of the world’s richest list.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.