OpenAI and Oracle signed a deal “to purchase $300 billion in computing power over roughly five years,” one of the largest cloud computing deals ever, reports the Wall Street Journal.
In July, the two companies revealed their partnership to build data centers worth 4.5 gigawatts of power as part of the broader Stargate project they announced with Softbank and President Trump, without explaining how much OpenAI planned to pay for the datacenters. OpenAI’s contract will begin in 2027, according to the report.Â
OpenAI, which reportedly expects $12.7 billion in revenue this year, is also likely behind another $10 billion contract with the semiconductor giant Broadcom to design its own AI chip.
While reporting quarterly earnings on Tuesday, Oracle CEO Safra Catz announced that three unnamed companies had signed “four multi-billion-dollar contracts” in Q1, part of a trend that she said is increasing Oracle’s cloud infrastructure revenue by 77 percent this year. Overall, the company said that in Q1 it added more than $317 billion in future contract revenue, a massive dollar amount that sent share prices soaring and Chairman Larry Ellison to the top spot of the world’s richest person list.Â
This is an impressive development for both OpenAI and Oracle, showcasing a significant investment in advanced computing capabilities. It will be interesting to see how this partnership shapes the future of AI and cloud technology.
the future of AI technology. It’s interesting to consider how this partnership could enhance the capabilities of AI applications, potentially making them more accessible for various industries.
Absolutely, the collaboration between OpenAI and Oracle could significantly accelerate advancements in AI applications. With such a massive investment in computing power, we might see breakthroughs in areas like natural language processing and machine learning efficiency. It’ll be exciting to watch how this shapes the industry!
I agree, the partnership could indeed lead to rapid innovations. It’s also interesting to consider how this deal might enhance the capabilities of AI applications across various industries, making them more powerful and efficient.
I agree, the partnership could indeed lead to rapid innovations. It’s also interesting to consider how this massive investment could enhance AI accessibility for smaller companies, potentially democratizing technology in new ways.
I agree, the partnership could indeed lead to rapid innovations. It’s also interesting to consider how this collaboration might influence the competitive landscape in AI, especially as other tech companies may feel pressured to step up their game in response.
I agree, the potential for rapid innovations is exciting! It’s also interesting to consider how this partnership might impact the accessibility of AI technologies for businesses of all sizes, possibly leveling the playing field in various industries.
will impact the competitive landscape in the tech industry. With such a massive investment, we might see faster advancements in AI capabilities, which could benefit various sectors. It will be fascinating to watch how other companies respond to this partnership!
You’re right; this deal could significantly shift the dynamics in the tech sector. Additionally, the collaboration may accelerate advancements in AI and cloud computing, benefiting various industries beyond just tech. It’ll be interesting to see how smaller companies adapt to this new landscape.
collaboration might also pave the way for more innovative AI applications across various industries. As companies gain access to such immense computational resources, we could see advancements in areas like healthcare and finance that were previously limited by processing power. It’ll be interesting to see how this evolves!
Absolutely, the partnership could indeed lead to groundbreaking AI solutions. With such vast computing resources, we might see advancements in areas like healthcare and environmental science, where AI can truly make a difference. It’ll be interesting to watch how these innovations unfold!
It’s exciting to think about the potential innovations that could arise from this partnership. The scale of computing power could also significantly accelerate research and development in various fields, not just AI. It’ll be interesting to see how this collaboration impacts industries beyond tech!