🚀 OpenAI Signs Record $300 B Cloud Deal With Oracle to Build Massive U.S. Data Centers

[cryptoenthusiast]

OpenAI has reportedly sealed one of the largest cloud-computing contracts in history — a $300 billion, five-year deal with Oracle, beginning in 2027, according to The Wall Street Journal and The New York Times.

️ What the Deal Covers

Purpose: Build new U.S. data centers and expand AI cloud infrastructure.

Scale: Part of the Stargate initiative, a joint venture launched in January 2025 by OpenAI, Oracle, and SoftBank with an initial $100 billion investment and plans to scale up to $500 billion over four years.

Locations: Construction has already begun in Abilene, Texas, with additional facilities planned in the United Arab Emirates.

Why It’s Historic — and Risky

For OpenAI: The company is still unprofitable and burning cash faster than any other startup, WSJ notes. Betting on a $300 billion cloud contract raises the stakes for its long-term revenue and product growth.

For Oracle: Much of the company’s future contract revenue — projected at $317 billion — now hinges on OpenAI. To deliver the necessary AI chips and infrastructure, Oracle may need to borrow heavily.

Market Reaction

Oracle’s stock soared from ~$242 to $345, a 40%+ jump, after announcing its $317 billion in expected future contract revenue (without naming clients).

The surge briefly pushed co-founder Larry Ellison’s net worth to $383 billion, at one point eclipsing Elon Musk, though Bloomberg now lists Musk slightly ahead at $384 billion.

Strategic Context

This mega-deal underscores the race to build next-gen AI infrastructure, where computing power and data-center capacity are now as critical as algorithms.

It also marks a deepening partnership between OpenAI and Oracle, positioning them to compete with hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud.

Bottom line:
OpenAI’s $300 billion bet on Oracle cloud capacity is a once-in-a-generation infrastructure play. If successful, it could redefine the economics of AI, create massive new data-center networks, and cement OpenAI and Oracle as central pillars of the global AI ecosystem.