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Wayne Williams

15 September 2025

ChatGPT maker will owe Oracle an average of $60 billion annually

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OpenAI signs $300 billion Oracle contract starting in 2027 to expand AI capacity
Oracle shares jump over 40 percent after reporting $317 billion in future revenue
Deal raises risks as OpenAI loses money and Oracle takes on heavy debt

OpenAI has signed a contract with Oracle to buy $300 billion worth of computing power over the next five years, according to the Wall Street Journal.

This makes it one of the largest cloud deals ever struck.
The contract will begin in 2027 and is expected to reshape how OpenAI builds and runs its artificial intelligence models.

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OpenAI is massively upping its Oracle cloud capacity to power Project Stargate – is this the mystery $30bn deal?

Stargate is back on – OpenAI and Oracle unveil massive data center expansion plans in major AI push

Oracle signs a mystery huge cloud contract – one which could net it $30bn in revenue

A huge gamble
The agreement will require 4.5 gigawatts of power capacity, which is enough electricity to supply about four million homes.

It shows how the rush to build AI data centers is driving new highs in technology spending even as questions remain over whether demand will justify such commitments.
Oracle disclosed in its latest earnings report that it added $317 billion in future contract revenue during the quarter ending August 31, partly due to the OpenAI deal.
The news sent Oracle shares soaring by more than 40 percent in a single day. That surge increased Oracle Chairman Larry Ellison’s wealth by more than $100 billion, and saw him overtake Elon Musk as the world’s richest person with a net worth close to $400 billion.

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The deal is not without massive risk for both parties, however.
For OpenAI, the agreement provides a new source of computing power after years of relying exclusively on Microsoft’s Azure cloud, but WSJ says the company, which reported about $10 billion in revenue this year, will owe Oracle an average of $60 billion annually under the agreement.
The startup is losing money and has told investors it does not expect to turn a profit until 2029.

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OpenAI is massively upping its Oracle cloud capacity to power Project Stargate – is this the mystery $30bn deal?

Stargate is back on – OpenAI and Oracle unveil massive data center expansion plans in major AI push

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Oracle, meanwhile, will have to borrow heavily to finance the AI chips and infrastructure needed to deliver the contract.
Plus, as WSJ reported, “The deal rests on the assumption ChatGPT will continue its explosive growth and be adopted by billions of people across the world, as well as major businesses and governments.”
Industry analysts say the partnership underlines both the promise and the strain of the AI boom. Spending on chips, servers, and data centers worldwide is projected to reach $2.9 trillion by 2028.
Whether OpenAI’s growth can keep pace with its commitments remains an open question.
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Wayne Williams

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Wayne Williams is a freelancer writing news for TechRadar Pro. He has been writing about computers, technology, and the web for 30 years. In that time he wrote for most of the UK’s PC magazines, and launched, edited and published a number of them too.

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OpenAI is massively upping its Oracle cloud capacity to power Project Stargate – is this the mystery $30bn deal?

Stargate is back on – OpenAI and Oracle unveil massive data center expansion plans in major AI push

Oracle signs a mystery huge cloud contract – one which could net it $30bn in revenue

OpenAI’s Sam Altman is dreaming of running 100 million GPUs in the future – 100x more than it plans to run by December 2025

Open AI’s massive Project Stargate is already struggling, may be scaled back

OpenAI to move to Google Cloud infrastructure to boost ChatGPT computing power

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