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OpenAI has entered into a landmark $300 billion cloud computing partnership with Oracle, marking one of the largest technology contracts in history. The five-year agreement, set to begin in 2027, will provide OpenAI with 4.5 gigawatts of computing power—enough to support the training and deployment of advanced artificial intelligence models at unprecedented scale.
The deal is part of OpenAI’s broader “Project Stargate” initiative, a $500 billion infrastructure program aimed at securing long-term access to high-performance data centers across the United States. Oracle will deliver computing capacity through facilities in states including Texas, Wyoming, and Pennsylvania, with construction already underway.
This partnership positions Oracle as a major player in the AI cloud market, competing with Amazon Web Services, Microsoft Azure, and Google Cloud. For OpenAI, the move diversifies its cloud supply chain following a shift away from exclusive reliance on Microsoft earlier this year.
While the scale of the contract reflects the growing demand for AI infrastructure, it also introduces financial risks. OpenAI, currently generating around $10 billion in annual revenue, will owe Oracle approximately $60 billion per year under the agreement. Neither company expects immediate profitability from the venture.
The deal underscores the intensifying race among tech giants to secure computing power as AI development accelerates globally.
