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3d ago

OpenAI Reportedly Commits $300 Billion to Oracle Cloud Starting in 2027

Oracle’s disclosure of a vast cloud backlog ignited a rapid stock swing that refocused attention on how OpenAI will finance such an outsize compute plan.

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Overview

  • The Wall Street Journal reported that OpenAI agreed to a roughly $300 billion, five‑year cloud compute commitment with Oracle scheduled to begin in 2027.
  • Oracle’s quarterly filing cited more than $317 billion in cloud contracts and backlog, which fueled a sharp rally before gains partially reversed by the market close.
  • Bloomberg’s wealth tracker showed Larry Ellison briefly near the top of global rankings during the surge before Elon Musk retook the lead after the retracement.
  • Analysts are questioning OpenAI’s ability to fund payments estimated at about $60 billion per year given multi‑billion‑dollar losses and projections of profitability no earlier than 2029.
  • Oracle cofounder Larry Ellison said the company expects to profit from AI infrastructure and daily operations across industries, as investor debate grows over a potential AI data‑center investment bubble.