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5d ago

OpenAI Said to Commit $300 Billion to Oracle Compute Starting 2027

The reported pact reflects a bid to lock in massive AI capacity even as OpenAI prepares to build more first‑party data centers.

Oracle co-founder Larry Ellison just became the world's wealthiest person.
People walk next to the Google Cloud logo, during the 2025 Mobile World Congress (MWC) in Barcelona, Spain, March 4, 2025. REUTERS/Albert Gea/File Photo
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Overview

  • The Wall Street Journal reports OpenAI agreed to buy about $300 billion of Oracle computing over roughly five years beginning in 2027, tied to the multi‑party Project Stargate buildout of data centers requiring about 4.5 gigawatts of power.
  • Oracle disclosed $455 billion in remaining performance obligations after signing four multi‑billion‑dollar contracts with three customers, sending its shares up roughly 30%–43% and briefly lifting Larry Ellison to the top of global wealth rankings.
  • OpenAI has not confirmed the reported contract, and Oracle declined comment, leaving details of phasing and financing unanswered.
  • OpenAI CFO Sarah Friar told investors the company expects about $13 billion in 2025 revenue and warned cloud providers have been “learning on our dime,” signaling a longer‑term pivot to first‑party data centers to protect IP.
  • Beyond Microsoft Azure, OpenAI has lined up capacity with Oracle, Google and CoreWeave and is reportedly working with Broadcom on custom chips as it races to expand compute for training and inference.