Artificial intelligence research company OpenAI has entered into one of the largest cloud contracts in history, committing to purchase $300 billion worth of computing power over five years from Oracle, according to the Wall Street Journal.
This landmark deal underscores the soaring costs of AI infrastructure as demand for advanced data processing and large-scale computing accelerates globally.
Massive AI Infrastructure Capacity
The agreement will reportedly require 4.5 gigawatts of power capacity, a scale comparable to:
- More than two Hoover Dams
- The energy consumption of four million homes
This infrastructure will support training on up to 64,000 NVIDIA GPUs or Grace Blackwell Superchips, connected via ultra-low-latency networking with scalable storage and compute options.
Such capability will enable OpenAI to power the next generation of generative AI, natural language processing, and advanced machine learning applications at unprecedented speed and efficiency.
Larry Ellison Surpasses Elon Musk as World’s Richest Person
Following the announcement, Oracle’s stock surged more than 39% on Wednesday, driving a record-breaking increase in chairman and co-founder Larry Ellison’s fortune.
- Ellison’s net worth jumped by $101 billion in a single day, the largest one-day increase ever recorded by Bloomberg’s Billionaires Index.
- His total wealth has now reached $405 billion, surpassing Elon Musk’s $384 billion after Tesla’s recent stock decline.
- Ellison’s wealth is fueled by his 41% stake in Oracle, equivalent to 1.16 billion shares.
At 81 years old, Ellison’s return to the top of the billionaire leaderboard marks a historic financial milestone and highlights Oracle’s resurgence in the AI and cloud computing boom.
Oracle’s Future Contract Revenue Hits Record Levels
Oracle revealed in its latest quarterly earnings report that it added $317 billion in future contract revenue for the period ending August 31.
This growth reflects the company’s strengthened position in the competitive cloud infrastructure market, fueled by rising investor confidence in Oracle’s ability to capture AI-driven demand.
What This Means for AI and Cloud Computing
This unprecedented $300 billion deal demonstrates:
- The explosive growth of AI data center spending, despite concerns from analysts about market overheating.
- OpenAI’s long-term bet on scaling computing capacity, even as its current revenue trails far behind such an enormous investment.
- Oracle’s strategic rise as a major AI cloud provider, boosting its reputation and stock market performance.
As generative AI adoption accelerates worldwide, this partnership cements Oracle’s role as a central force in powering the future of artificial intelligence.
