San Francisco/New York | September 11, 2025
Artificial intelligence research company OpenAI has signed one of the largest cloud-computing contracts in history, committing to purchase $300 billion worth of computing power over five years from Oracle, according to reports confirmed by The Wall Street Journal and Reuters.
The agreement, scheduled to begin in 2027, will provide 4.5 gigawatts of computing capacity—comparable to the power output of more than two Hoover Dams or enough to supply electricity to about four million homes.
The landmark deal underscores the escalating costs of artificial intelligence infrastructure as demand for advanced data processing surges. It is also part of the broader Stargate initiative, an ambitious AI data-center project expected to cost up to $500 billion and involving partners such as Oracle and SoftBank.
Following the announcement, Oracle’s shares surged more than 40%, adding hundreds of billions of dollars in market capitalization and propelling founder Larry Ellison closer to the top of the global wealth rankings.
Industry analysts note that the agreement highlights both OpenAI’s expanding infrastructure requirements and Oracle’s growing role as a major force in cloud computing, though questions remain about the long-term financing and execution of such unprecedented commitments.
