OpenAI signs $300 billion contract with Oracle

The Wall Street Journal said on Wednesday that cloud computing behemoth Oracle and artificial intelligence (AI). Startup OpenAI have agreed to a $300 billion five-year computing contract.

According to the Journal, which cited people with knowledge of the situation, this contract is among the biggest in the computer sector to date. Will begin in 2027, and it will need a huge 4.5 gigawatt energy capacity.

In response to its quarterly results, which were made public yesterday after the stock market closed and showed that Oracle had inked multiple multi-billion-dollar contracts. Establish it as a leader in the AI space, the company’s shares shot up more than 40% this morning.

Oracle disclosed outstanding performance commitments of $455 billion, four times the amount from the previous year, despite ending the latest quarter below analysts’ estimates. This indicates that the company has promising future prospects.

The IT giant shocked analysts with its projections, estimating that its cloud division will bring in about $18 billion this fiscal year. About twice as much as the year before, and that amount will double again by 2027, to $32 billion.

The predictions align with the terms of the OpenAI contract, and Oracle really anticipates that its revenue in this market will continue to grow at an exponential rate, reaching $144 billion by 2030.

Oracle’s co-founder and CEO, billionaire Larry Ellison, now has a wealth of $393 billion, surpassing Elon Musk’s $385 billion, according to the Bloomberg Billionaires Index, as a result of the company’s growing stock price.