Ігор Вишневський Money 3 July 2025, 14:34

$30 billion per year deal: what OpenAI and Oracle agreed to and what it will bring to both companies

OpenAI has agreed to lease 4.5 gigawatts of computing power from Oracle in a deal worth about $30 billion per year.

According to the Financial Times, this is one of the largest deals for the artificial intelligence industry to date.

The deal will mark a significant expansion of the OpenAI Stargate data center project that the company launched with SoftBank in January, giving it access to vast amounts of computing power to further develop AI models and meet consumer demand for products like ChatGPT.

According to sources close to the deal, Oracle will launch several data centers across the United States to fulfill the terms of the new contract under the Stargate project.

Approximately 4.5 GW is equivalent to about a quarter of the current operating capacity of data centers in the United States.

OpenAI and SoftBank previously announced that the Stargate project would invest up to $500 billion in building data centers in the US and around the world.

The joint venture has already raised about $50 billion from its founding partners, including Oracle itself and Abu Dhabi sovereign wealth fund MGX.

Earlier this week, Oracle announced a single cloud computing contract worth $30 billion in annual revenue starting in 2028, but did not name the customer. However, people close to the deal confirmed to the Financial Times that the customer is OpenAI as part of an expansion of the Stargate project.

Potential locations for new data centers include Texas, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio and Pennsylvania, the sources said. Oracle will also expand its 1.2 GW Stargate facility in Texas.

Oracle shares soared to a record high after the deal was announced. The deal is worth nearly three times the $10.3 billion in annual revenue the company expects from its data center infrastructure business by 2025.

Oracle was slow to enter the cloud computing market, but has shown dramatic growth in the data center infrastructure industry.

Oracle has already pledged to invest $7 billion in the Stargate joint venture and has planned $25 billion in capital expenditures next year.

As dev.ua reported, Oracle is investing $40 billion in Nvidia chips to build one of the world’s largest data centers.