Oracle and OpenAI ink $300 billion supercomputing deal
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Oracle has signed a five-year agreement to provide OpenAI with $300 billion worth of computing infrastructure starting in 2027, according to reporting by The Wall Street Journal. The deal is one of the biggest cloud contracts ever recorded, and it completely overshadows OpenAI’s current yearly revenue of $10 billion. This agreement will require 4.5 gigawatts of energy to power the planned infrastructure, an amount that could serve nearly four million homes or exceed the output of two Hoover Dams. This development comes as OpenAI tries to break through the ceiling caused by a shortage of compute capacity, which has slowed down its product releases and model development. With this new arrangement, OpenAI intends to build out massive new data centers, and it’s placing Oracle at the center of that expansion. The AI firm already attempted to fix the shortage through a joint venture with SoftBank, launching the Stargate data center initiative. But that plan has seen minimal progress. The company now says Stargate includes all its data-center projects, and the Oracle contract is part of that branding. Oracle’s stock jumps, Ellison’s net worth spikes $100B Oracle revealed in its earnings for the quarter ending August 31 that it had locked in $317 billion in future contract revenue, which includes the OpenAI deal. Shares of the company shot up 42% on Wednesday after the announcement, Cryptopolitan reported. Safra Catz, the company’s Chief Executive Officer, told analysts the new revenue came from three different contracts signed during the quarter. She didn’t identify the companies involved at the time. That stock movement pushed Oracle co-founder and Chairman Larry Ellison into a new wealth bracket. His net worth jumped by over $100 billion, putting him close to Elon Musk on the global rich list. Ellison now sits on a personal fortune estimated at $400…
