OpenAI signs $300B Oracle cloud deal under Project Stargate
OpenAI has signed a record $300B cloud deal with Oracle, starting in 2027, securing 4.5 GW of computing power under Project Stargate.
OpenAI has reportedly entered into one of the largest cloud computing agreements in history, signing a deal worth nearly $300 billion with Oracle.
The multi-year contract, expected to start in 2027, will provide OpenAI with access to computing capacity, marking a milestone in the global artificial intelligence (AI) race.
A record-breaking deal
The agreement between OpenAI and Oracle covers a five-year period and is valued at around $300 billion, according to multiple reports. Under the deal, Oracle will supply OpenAI with up to 4.5 gigawatts of computing power, specifically designed to support large-scale AI training and deployment.
This partnership is part of the broader Project Stargate initiative, which involves the construction of massive new data centres dedicated to advanced AI workloads. The project is backed by Oracle, OpenAI, SoftBank, and other potential collaborators, and aims to establish one of the most powerful cloud infrastructures globally.
Why Oracle?
Oracle has been aggressively building its presence in the cloud infrastructure space. By securing this deal with OpenAI, it positions itself as a leading provider of AI-specific cloud services, competing directly with Amazon Web Services, Google Cloud, and Microsoft Azure.
For OpenAI, the partnership with Oracle diversifies its compute supply chain. Until now, Microsoft has been its primary infrastructure partner. This move reduces dependence on a single provider and ensures long-term capacity for its fast-growing AI models and applications.
With the deal scheduled to begin in 2027, preparations for Project Stargate are already underway. Construction of data centres capable of delivering gigawatt-scale computing is expected to be a multi-year effort, involving billions in capital expenditure.
While OpenAI has not publicly confirmed the details of the contract, the size and scope of the reported agreement reflect the escalating scale of AI development and the lengths companies are willing to go to secure critical compute infrastructure.