Hajra Naz
Oracle’s stock jumped after hours on news that it secured several massive cloud contracts. While the company kept details under wraps, new reporting reveals who may be behind these deals.
According to the Wall Street Journal, Oracle signed an agreement with OpenAI valued at $300 billion in compute resources. The deal would stretch over five years, beginning in 2027. If accurate, this would rank among the largest cloud contracts in history.
Neither Oracle nor OpenAI confirmed the details. Oracle declined to comment, while OpenAI did not respond to requests. Still, the potential scale of this contract underscores how fiercely cloud providers are competing for AI workloads.
A Deepening Partnership Between Oracle and OpenAI
This isn’t the first time OpenAI has leaned on Oracle. In mid-2024, OpenAI began using Oracle’s infrastructure to supplement its heavy reliance on Microsoft Azure. By January 2025, the company had formally diversified, signaling a move away from Azure as its exclusive cloud provider.
That shift aligned with OpenAI’s participation in the Stargate Project—a joint effort with SoftBank and Oracle to invest $500 billion in U.S.-based data centers over the next four years. The goal: expand domestic compute capacity and reduce dependence on any single provider.
Read More: Oracle Partners with Google Cloud to Power Enterprise AI with Gemini
OpenAI’s Growing Appetite for Compute
The scale of OpenAI’s computing needs is staggering. Training and running advanced AI models require enormous amounts of infrastructure.
Analysts predict global demand for AI cloud services could pass $1 trillion a year by 2030. OpenAI, a leader in generative AI, will likely use more compute than almost any other company in the industry.
To meet those demands, OpenAI has spread its bets:
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It continues working with Microsoft, which remains a major investor.
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It is tapping Oracle for large-scale infrastructure contracts.
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It even signed a deal with Google earlier in 2025, according to Reuters, despite competing with the company in the AI race.
This multi-cloud strategy reflects OpenAI’s need to secure reliable, diversified access to compute power as AI adoption accelerates worldwide.
What It Means for Oracle
For Oracle, the deal could be a game-changer. The company has long trailed AWS, Microsoft Azure, and Google Cloud. But in the AI era, Oracle is gaining momentum with its high-performance cloud.
If the $300 billion contract goes through, Oracle could become a top-tier AI cloud provider. This would reshape its role in the global cloud market.
Last year, Oracle Cloud Infrastructure (OCI) made about $20 billion in revenue. Adding OpenAI’s multi-billion-dollar demand could push that number much higher.
Conclusion
The reported Oracle–OpenAI agreement highlights two truths:
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AI’s hunger for computing power is insatiable.
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Cloud providers are entering a new era of mega-deals.
While OpenAI has not confirmed the news, one thing is clear—competition to host the future of AI is heating up, and Oracle is suddenly in the middle of it.
Read More: OpenAI Will Pay Oracle $30 Billion Yearly for Data Center Services
FAQs
1. How big is the reported Oracle–OpenAI deal?
The Wall Street Journal reported it could be worth $300 billion over five years, making it one of the largest cloud contracts ever.
2. When would OpenAI start using Oracle’s compute under this deal?
OpenAI is expected to begin purchasing compute in 2027 if the agreement holds.
3. Why is OpenAI diversifying away from Microsoft Azure?
While Microsoft remains a core partner and investor, OpenAI is spreading its compute demand across Oracle, Google, and others to avoid reliance on a single provider.
4. What is the Stargate Project?
It’s a joint initiative between OpenAI, SoftBank, and Oracle to invest $500 billion in U.S. data centers over four years, boosting domestic compute capacity.
5. How does this deal affect Oracle’s position in the cloud market?
Oracle has trailed AWS, Azure, and Google Cloud. But a $300B OpenAI deal could elevate Oracle to a leading AI cloud provider, dramatically growing its market share.
