Oracle inks massive $30 billion cloud contract with anonymous client, later revealed to be OpenAI
Oracle, the global technology company, has announced a landmark $30 billion annual revenue deal with OpenAI, effective from 2028. This deal is a significant step in Oracle's expansion plans for Project Stargate, a joint venture aimed at building AI data center capacity [1][2].
Project Stargate is a multi-year, large-scale AI infrastructure plan, backed by the U.S. government and major partners like SoftBank. The initiative targets an investment of $500 billion over four years, with an initial $100 billion [1][2].
The deal will see Oracle develop and lead new data center projects nationwide, including expanding its existing Abilene, Texas campus from 1.2 GW to 2 GW. Other states being considered for data center expansions include Michigan, Wyoming, Georgia, Ohio, Pennsylvania, Wisconsin, and New Mexico, reflecting a broad geographical rollout [1][3].
The volume of power being leased—4.5 GW—is enormous, enough to power millions of American homes, underscoring the scale of the AI computing demand OpenAI is preparing for [4]. This deal will significantly boost Oracle’s cloud business, with the $30 billion contract expected to contribute heavily to Oracle's cloud revenue growth by fiscal 2028 [2][3].
Oracle's CEO, Safra Catz, stated that the firm is off to a strong start in fiscal year 2026. However, the customer for the deal remains unnamed, with reports suggesting possibilities of OpenAI and TikTok.
This agreement will form the backbone of OpenAI’s strategy to build massive AI data center infrastructure, enabling it to power advanced AI workloads and scale its operations globally. Oracle emerges as a key infrastructure partner in this expansion, highlighting its growing prominence in the AI cloud ecosystem [1][2][3][4].
The deal ends several days of speculation over a mystery customer Oracle had secured. Development projects are also reported in Michigan, Wyoming, Georgia, Ohio, and Pennsylvania, as part of the deal.
[1] Oracle Press Release: Oracle and OpenAI Announce Strategic Cloud Partnership [2] CNBC: Oracle secures $30 billion deal with OpenAI for AI data center capacity [3] The Verge: Oracle's Project Stargate: A $500 billion plan to build AI data centers [4] Forbes: The Scale Of Oracle's AI Data Center Deal With OpenAI: Enough Power For Millions Of Homes
This strategic partnership between Oracle and OpenAI, worth $30 billion, will play a significant role in Oracle's cloud business expansion, particularly in data-and-cloud-computing initiatives related to Project Stargate. The agreement will see Oracle develop new AI data centers across multiple states, including Texas, Michigan, Wyoming, Georgia, Ohio, Pennsylvania, Wisconsin, and New Mexico, thereby bolstering its cloud computing infrastructure.
