OpenAI signed a $300 billion, five-year cloud deal with Oracle starting in 2027

Oracle has signed a five-year agreement to provide OpenAI with $300 billion worth of computing infrastructure starting in 2027, according to reporting by The Wall Street ￰0￱ deal is one of the biggest cloud contracts ever recorded, and it completely overshadows OpenAI’s current yearly revenue of $10 ￰1￱ agreement will require 4.5 gigawatts of energy to power the planned infrastructure, an amount that could serve nearly four million homes or exceed the output of two Hoover ￰2￱ development comes as OpenAI tries to break through the ceiling caused by a shortage of compute capacity, which has slowed down its product releases and model ￰3￱ this new arrangement, OpenAI intends to build out massive new data centers, and it’s placing Oracle at the center of that ￰4￱ AI firm already attempted to fix the shortage through a joint venture with SoftBank, launching the Stargate data center ￰5￱ that plan has seen minimal ￰6￱ company now says Stargate includes all its data-center projects, and the Oracle contract is part of that branding.

Oracle’s stock jumps, Ellison’s net worth spikes $100B Oracle revealed in its earnings for the quarter ending August 31 that it had locked in $317 billion in future contract revenue, which includes the OpenAI ￰7￱ of the company shot up 42% on Wednesday after the announcement, Cryptopolitan ￰8￱ Catz, the company’s Chief Executive Officer, told analysts the new revenue came from three different contracts signed during the ￰9￱ didn’t identify the companies involved at the ￰10￱ stock movement pushed Oracle co-founder and Chairman Larry Ellison into a new wealth ￰11￱ net worth jumped by over $100 billion, putting him close to Elon Musk on the global rich ￰12￱ now sits on a personal fortune estimated at $400 billion, thanks in large part to the OpenAI ￰13￱ the deal comes with major ￰14￱ OpenAI, it means paying an average of $60 billion per year, six times what it currently ￰15￱ company is not yet profitable, and it’s placing a bet that its growth through ChatGPT will continue and lead to adoption across governments, companies, and billions of ￰16￱ Oracle, it means placing a big chunk of its future income on a single ￰17￱ meet its end of the bargain, Oracle will likely have to borrow money to acquire enough AI chips to build and power the required ￰18￱ years, OpenAI had relied solely on Microsoft to deliver the compute it ￰19￱ supply issues and growing frustration inside the company led to a ￰20￱ recently received waivers that allow it to seek new providers, clearing the way for Oracle to step in with a far bigger ￰21￱ the startup is still working through internal challenges like regulatory investigations and a fierce hiring market, the Oracle deal is its biggest step yet in scaling beyond ￰22￱ contract assumes that OpenAI’s user base, model performance, and commercial reach will all grow significantly over the next ￰23￱ with regulators in two ￰24￱ now reviewing its structure as a for-profit, and ongoing tensions with Microsoft, the next few years will test whether this bet pays off—or burns both companies.

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