OpenAI secures $30bn cloud deal with Oracle

GwendolynBusiness2025-07-048243

OpenAI has signed a new agreement with database group Oracle to secure 4.5GW of computing power in a deal valued at approximately $30bn annually.

The transaction is among the largest cloud agreements for AI to date, reported The Financial Times.

This comes after Oracle announced a cloud computing contract earlier in July 2025, with annual revenue starting in 2028, without naming the client. The deal's value is nearly three times the company’s $10.3bn annual revenue from its data centre infrastructure business in 2025.

It also signifies a major expansion of OpenAI's ‘Stargate’ data centre initiative, launched with SoftBank in January. This project aims to provide substantial computing resources to develop advanced AI models.

However, both OpenAI and Oracle declined to comment on the deal.

The Stargate project, which includes OpenAI, SoftBank, Oracle, and the Abu Dhabi sovereign fund MGX as founding partners, has committed to investing up to $500bn in data centre construction both domestically and globally. To date, the venture has raised around $50bn.

As part of Oracle’s Stargate contract requirements, the company is expected to establish multiple data centres across the US. The capacity of approximately 4.5GW represents about a quarter of the current operational data centre capacity in the US.

Potential sites for the new data centres include states such as Texas, Michigan, New Mexico, Wisconsin, Wyoming, Georgia, Ohio, and Pennsylvania.

Additionally, Oracle will enhance a 1.2GW Stargate facility in Abilene, Texas, in collaboration with data centre start-up Crusoe.

Stargate is part of Oracle's strategic move to compete with major cloud providers like Amazon and Microsoft. Oracle has committed $7bn to this joint venture and plans to allocate $25bn in capital expenditure next year, exceeding previous estimates.

Earlier in 2025, Oracle co-founder and chief technology officer Larry Ellison said: “We will build and operate more cloud infrastructure data centres than all of our cloud infrastructure competitors.”

Oracle plans to purchase approximately 400,000 of Nvidia's high-performance GB200 chips for around $40bn to power the Abilene data centre, the publication added.

"OpenAI secures $30bn cloud deal with Oracle" was originally created and published by Verdict, a GlobalData owned brand.


 


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Fielder

Oracle's $30 billion cloud deal with OpenAI signals a significant shift in the industry, as AI-powered computing demands continue to escalate.

2025-07-04 17:19:48 reply
Anneliese

The $30 billion cloud deal between OpenAI and Oracle marks a significant milestone in the technological advancement of AI, as it cements collaboration to enhance machine learning capabilities on an unprecedented scale.

2025-07-04 17:20:07 reply
Decker

This latest $30bn cloud deal between OpenAI and Oracle underscores the fast-paced advances in AI technologies, showcasing substantial investments by industry giants to champion innovative computing solutions.

2025-07-04 17:20:19 reply

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