OpenAI has locked in a record-breaking $300 billion agreement with Oracle, according to a Wall Street Journal report. The five-year deal, set to begin in 2027, will secure computing power from Oracle’s expanding data center empire, forming the backbone of Project Stargate, the massive AI infrastructure initiative announced in July alongside SoftBank and President Trump.

At the heart of Stargate is a network of facilities with 4.5 gigawatts of capacity — roughly the energy output of two Hoover Dams — designed to support the training and deployment of next-generation AI models. The deal signals just how capital-intensive frontier AI has become, with compute itself emerging as the new strategic resource.

OpenAI’s Growing Ambition

The contract underscores OpenAI’s appetite for scale. The company, projected to generate $12.7 billion in revenue in 2025, is also reportedly behind a $10 billion deal with Broadcom to design its own AI chip. That push reflects concerns about dependency on Nvidia GPUs and the rising costs of securing advanced semiconductors.

Oracle’s Windfall

Oracle, meanwhile, is rapidly transforming into a central player in the AI infrastructure boom. CEO Safra Catz revealed this week that three major companies signed “four multi-billion-dollar contracts” in Q1, helping drive a 77% surge in cloud infrastructure revenue. The company reported adding $317 billion in future contract revenue last quarter — a staggering figure that sent shares soaring and propelled Chairman Larry Ellison to the top of the world’s richest list.

Why It Matters

The size of the deal makes it a watershed moment in cloud computing and AI. For OpenAI, it secures the compute muscle to train increasingly large language models in the late 2020s. For Oracle, it cements its pivot from enterprise software stalwart to cloud powerhouse, now sitting alongside Amazon, Microsoft, and Google in the AI arms race.

With AI workloads consuming unprecedented energy and compute, Project Stargate is shaping up not just as a corporate bet, but as a symbol of how AI is reshaping the global tech and energy landscape.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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