By Priya Pathak

Copyright republicworld

OpenAI and Oracle have reportedly joined hands on a huge deal. According to a media report, the AI company will pay Oracle $300 billion for computer power over about five years. This deal, starting in 2027, is part of a bigger project called Project Stargate.Back in July, OpenAI and Oracle announced they were working together. They said they would build huge data centers. These centers would need a lot of electricity of about 4.5 gigawatts of power. This was part of Project Stargate, which also involves Softbank and President Trump. However, at that time, they didn’t disclose the amount OpenAI would pay for the data centers. Now, thanks to the Wall Street Journal, we know the cost is a massive $300 billion.This deal highlights the significant investment being made in artificial intelligence, or AI. OpenAI is a very big company in the world of AI. It makes popular AI products and is expected to make around $12.7 billion this year. This is not the only big contract OpenAI is signing. The company is also likely behind another $10 billion deal with a chip company called Broadcom. That deal is to help OpenAI make its own special AI chips. This shows that OpenAI is investing heavily to build its own technology and not just relying on others.This news is also great for Oracle. The company just shared its earnings report for the first quarter of the year. Oracle’s CEO, Safra Catz, said that three companies had signed four big deals, each worth billions of dollars. She didn’t name the companies, but it’s clear that the deal with OpenAI is one of them. These new deals have made Oracle’s cloud business much bigger. In fact, its revenue from cloud infrastructure has gone up by 77% this year.Overall, Oracle added more than $317 billion in future money from new contracts just in this first quarter. This huge number got people very excited. It made Oracle’s stock price go way up. It also made Oracle’s chairman, Larry Ellison, the richest person in the world.The size of this deal and the money involved are a big sign of how important AI is becoming. It shows that companies like OpenAI need a huge amount of computing power to keep building and improving their AI models. And it shows that companies like Oracle are making a lot of money by providing that power. The world of technology is changing fast, and these kinds of multi-billion-dollar agreements are a clear sign of that change.Read More: ‘Let Us Know When It Folds’: Samsung Revives Old Taunt At Apple