SEOUL, SOUTH KOREA – 2025/02/04: Open AI Chief Executive Officer Sam Altman speaks during the Kakao media day in Seoul. South Korean tech giant Kakao Corp. on February 4 announced partnership with OpenAI to use ChatGPT on its new artificial intelligence (AI) service joining a global alliance led by the U.S. AI company amid intensifying competition in the global AI market. (Photo by Kim Jae-Hwan/SOPA Images/LightRocket via Getty Images) | Image Credits:Kim Jae-Hwan/SOPA Images/LightRocket / Getty Images
Oracle sent its shares soaring after markets closed yesterday after reporting that it signed multiple multi-billion-dollar contracts with several customers. Now, we have an idea of who those customers might be.
Oracle signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power over a span of about five years, according to reporting from the Wall Street Journal. OpenAI would start purchasing this compute in 2027.
If the WSJ’s reporting is correct, this would be one of the largest cloud contracts ever signed. Oracle declined to comment. OpenAI did not respond to a request for confirmation or comment.
Oracle is no stranger to working with OpenAI. OpenAI started tapping Oracle for compute in the summer of 2024. The AI giant also moved further away from exclusively using Microsoft Azure as its only cloud provider in January.
This move away from Microsoft was timed with OpenAI’s involvement with the Stargate Project, in which OpenAI, SoftBank, and Oracle have committed to invest $500 billion into domestic data center projects over the next four years.
OpenAI clearly needs as much compute as it can get. The company reportedly signed a cloud deal with Google, according to Reuters, this spring despite the fact that the two companies are racing against each other for AI supremacy.