‘Of course’ OpenAI could pay $60 billion a year

oracle CEO Clay Magouyrk, one of the two people who took over the software company last month, is confident that OpenAI can cover the cost of the vast amount of cloud infrastructure services it consumes.

In an interview with CNBC’s David Faber at Oracle’s AI World Conference on Monday, Magouik said OpenAI could “of course” pay $60 billion for a year’s worth of cloud resources. In July, OpenAI agreed to a five-year contract with Oracle worth more than $300 billion.

“Look at the pace at which we’ve reached nearly 1 billion users. That’s unprecedented,” Magouik said, sitting alongside fellow Oracle CEO Mike Sicilia in an interview in Las Vegas.

OpenAI announced last week that its flagship chatbot, ChatGPT, now has 800 million weekly active users less than three years after its launch. In 2024, OpenAI recorded a net loss of $5 billion.

Cicilia said Oracle has begun integrating OpenAI artificial intelligence models into its patient portal for viewing electronic medical records. Oracle acquired EHR vendor Cerner in 2022 for about $28 billion.

“I’ve seen the results, and I really think it’s going to have a dramatic impact on all kinds of industries and companies,” Sicilia said of OpenAI.

Rented by OpenAI Nvidia a graphics chip to run the model through Oracle, and coreweave, google and microsoft. At the same time, the company is designing a custom AI processor. broadcom Build. Earlier Monday, Broadcom and OpenAI announced they would jointly deploy 10 gigawatts worth of new OpenAI chips.

Building this much infrastructure requires large amounts of new energy.

“I think it’s a time factor, not a factor of whether we have enough power,” Sicilia said.

Oracle stock rose 5% on Monday. The stock is up 84% this year, pushing Oracle’s market capitalization to nearly $900 billion.

WATCH: Oracle CEO Magwirk: ‘Of course’ OpenAI can pay $60 billion a year