OpenAI Signs $300 Billion Cloud Computing Deal with Oracle in Historic AI Infrastructure Move

 OpenAI and Oracle Ink $300 Billion Cloud Deal, One of the Largest in History

In a move that underscores the escalating cost of powering artificial intelligence at scale, OpenAI has reportedly signed a $300 billion cloud computing agreement with Oracle, set to begin in 2027. The deal, first reported by The Wall Street Journal and confirmed by Reuters and TechCrunch, ranks among the largest cloud contracts in history and signals just how resource-intensive next-generation AI models have become.

The scale of the deal

The agreement spans five years and will provide OpenAI with unprecedented access to Oracle’s cloud infrastructure. At roughly $60 billion per year, the deal dwarfs most enterprise IT contracts and rivals the size of some national technology budgets. While neither OpenAI nor Oracle has issued public comment, the scale of the reported contract highlights the immense compute power OpenAI requires to train and deploy advanced AI systems.

Stargate and the infrastructure race

The $300 billion contract appears linked to OpenAI’s Stargate initiative, a massive $500 billion plan to build out AI supercomputing infrastructure. Earlier reports from the Financial Times suggested OpenAI had already agreed to spend around $30 billion per year with Oracle for 4.5 GW of capacity, totaling $150 billion over five years. The newly reported $300 billion figure suggests a doubling of that commitment or the inclusion of broader infrastructure beyond just compute capacity.

This deal also positions Oracle as a critical player in the AI infrastructure race, alongside rivals like Microsoft and Google. Microsoft has already invested heavily in custom AI supercomputers through Azure to support OpenAI, but this Oracle agreement hints at a multi-cloud approach where no single provider can shoulder the immense demand.

Why it matters

Artificial intelligence is increasingly limited not by algorithms but by compute power, energy, and specialized hardware. The cost of training large models is measured in billions, and deployment at scale requires entire data centers optimized for efficiency. A $300 billion deal underlines how AI is pushing cloud infrastructure into uncharted financial and technological territory.

For Oracle, this contract is a validation of its cloud pivot under chairman Larry Ellison, who has aggressively pursued partnerships in AI and high-performance computing. For OpenAI, it’s a bet that access to vast computing power will remain the single biggest competitive advantage in building future AI systems.

The unanswered questions

While the headline number is staggering, questions remain:

• Is the $300 billion entirely for cloud compute, or does it include infrastructure, chips, and power agreements?

• How does this deal coexist with OpenAI’s existing partnership with Microsoft Azure?

• Can Oracle realistically deliver such massive capacity in the 2027–2032 window?

The coming months will likely bring more clarity. For now, what’s clear is that AI’s infrastructure demands have entered a scale few imagined possible, and Oracle has positioned itself at the center of one of the largest technology bets in history.