OpenAI and Oracle signed a $300 billion deal in the field of cloud computing

Oracle shares rose in price after the market closed yesterday following news that the company signed several multi-billion-dollar contracts with multiple clients.

Oracle has struck a deal with OpenAI, under which the artificial intelligence company will purchase computing power worth $300 billion over five years. OpenAI will begin acquiring this computing power in 2027.

This will be one of the largest cloud technology contracts ever signed. Oracle is not collaborating with OpenAI for the first time. OpenAI started using Oracle for computing in the summer of 2024. In January, the AI giant also stopped using Microsoft Azure as its sole cloud service provider.

This move away from Microsoft was linked to OpenAI's involvement in the Stargate project, under which OpenAI, SoftBank, and Oracle committed to investing $500 billion in domestic data center projects over the next four years.

Source: TechCrunch