Oracle’s Larry Ellison has just shot past Elon Musk as the richest man in the world, and his new status is in no small part thanks to his new deal with OpenAI. Oracle sent its shares soaring after markets closed yesterday after reporting that it signed multiple multi-billion-dollar contracts with several customers. Now, we have an idea of who those customers might be.
According to reporting from the Wall Street Journal, Oracle signed a deal with OpenAI for the AI company to purchase $300 billion worth of compute power over a span of about five years. If the WSJ’s reporting is correct, this would be one of the largest cloud contracts ever signed.
Oracle Corporation made global headlines after its stock surged more than 43% in a single day, driven by explosive demand for its cloud infrastructure services tied to artificial intelligence. The rally came after reports confirmed that Oracle had secured a multi-year cloud computing contract with OpenAI, reportedly worth up to $300 billion.
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This agreement is part of OpenAI’s broader “Stargate” initiative, aimed at expanding its AI computing capacity across the United States. Under the deal, Oracle will provide 4.5 gigawatts of data center capacity, making it one of the largest infrastructure expansions ever for AI deployment. Construction has already begun in Abilene, Texas, where Oracle is building new data centers to meet OpenAI’s needs.
As a result of the stock surge, Oracle’s market capitalization approached the $1 trillion mark, placing it alongside other tech giants such as Apple, Microsoft, and Nvidia. The market reaction also had an immediate impact on Oracle co-founder Larry Ellison’s net worth, which rose by more than $100 billion. According to Bloomberg’s Billionaires Index, Ellison’s total wealth hit approximately $393 billion, briefly making him the richest person in the world, ahead of Elon Musk. This development marked a milestone in Oracle’s decades-long evolution from a database company into a major player in cloud and AI infrastructure.
Although the $300 billion figure has been widely reported and cited by outlets, the exact terms of the deal, such as whether it is a fixed commitment or based on usage, have not been made fully public. However, Oracle executives have confirmed that a large portion of their future revenue will come from long-term AI cloud contracts. The company’s rapid ascent in the cloud sector reflects the increasing importance of AI infrastructure as a core driver of growth in the tech industry. This partnership not only strengthens Oracle’s position but also signals a new era in large-scale AI deployment in the United States.
The Oracle-OpenAI partnership marks a defining moment in the evolution of artificial intelligence infrastructure. The landmark deal between Oracle and OpenAI signifies a transformative moment for both companies and the broader technology landscape. This partnership enhances Oracle’s revenue prospects and strengthens its competitive edge in the rapidly growing AI cloud market. For OpenAI, access to massive, scalable compute power through Oracle’s expanding data centers is crucial to advancing its ambitious AI development goals.