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OpenAI Reported to Sign $300 Billion Oracle Cloud Deal Starting in 2027

Investors question how OpenAI will fund roughly $60 billion a year under a pact slated to begin in 2027.

Overview

  • Wall Street Journal reporting says OpenAI agreed to buy about $300 billion of compute from Oracle over five years, one of the largest cloud commitments to date.
  • The plan would require roughly 4.5 gigawatts of power capacity, underscoring the scale of new AI data-center buildouts referenced in the reports.
  • Oracle shares initially surged about 35% after revealing a $317 billion increase in contracted future cloud revenue, then fell 6.26% the next day.
  • The swing briefly lifted Larry Ellison above Elon Musk in wealth rankings before a market retracement and a Tesla rebound restored Musk to the top.
  • Coverage notes OpenAI’s estimated $10 billion in annual revenue versus about $60 billion in yearly payments under the deal, with questions about financing and limited public confirmation of terms.