Oracle has spiked its shares after the market closed yesterday after reporting it had signed multiple customers on multiple billion-dollar contracts. Now we have ideas about who those customers are.
Oracle has signed a deal with AI company Openai over nearly five years to buy $300 billion worth of computing power, according to a report from the Wall Street Journal. Openai will begin purchasing this calculation in 2027.
If the WSJ report is correct, this will be one of the biggest cloud agreements ever signed. Oracle declined to comment. Openai did not respond to requests for confirmation or comment.
Oracle is not someone who doesn’t know about working with Openai. Openai began tapping Oracle for computing in the summer of 2024. The AI giant further alienated the use of Microsoft Azure as its only cloud provider in January.
The move from Microsoft has pledged Openai, Softbank and Oracle to invest $500 billion in domestic data center projects over the next four years as Openai is involved in the Stargate Project.
Openai clearly requires as much calculation as it can get. According to Reuters, the company reportedly signed a cloud agreement with Google. Despite the fact that the two companies are competing against each other for AI hegemony this spring.
