OpenAI signs reported $300bn cloud deal with Oracle

Oracle and OpenAI were reported, via the Wall Street Journal and confirmed by both companies, to have signed a cloud-computing agreement worth roughly $300 billion over about five years, with capacity due to come online starting around 2027. The figure was not disclosed in a joint press release; it emerged in reporting shortly after the companies had already announced, in July, a commitment to build 4.5 additional gigawatts of data-centre capacity under the Stargate project, without putting a dollar figure on that commitment at the time. Reports described the total capacity involved as roughly equivalent to the output of more than two Hoover Dams, or the electricity consumption of several million US homes.

The disclosure followed Oracle’s stock rising sharply after the company told investors it had booked $317 billion in future contracted cloud revenue, with chief executive Safra Catz indicating that a small number of large customers, understood to include OpenAI, accounted for a substantial share of that backlog. Oracle had first disclosed a large OpenAI cloud agreement in an SEC filing in June, at the time projecting more than $30 billion in fiscal 2027 revenue from the relationship without naming the customer.

The deal became the largest single line item in OpenAI’s rapidly growing set of compute commitments, which by this point also included agreements with Microsoft, SoftBank, Nvidia, AMD and others under the umbrella of the Stargate project announced in January 2025. Commitments of this size, running into the hundreds of billions of dollars against a company that had not yet demonstrated it could generate matching revenue, drew scrutiny from analysts over how OpenAI intended to finance construction at this scale, and became a recurring point of comparison as other labs and cloud providers announced their own multi-billion-dollar infrastructure deals through the rest of 2025 and into 2026.