OpenAI Commits $300B to Oracle in Risky Cloud Pact

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Oracle has landed a $300 billion OpenAI deal, among the largest in cloud history. The agreement, reported by The Wall Street Journal, will see OpenAI purchase computing power from Oracle over the next several years in a bet that could reshape the cloud market. The scale of the pact underscores both the opportunities and risks tied to the AI boom.

Agreement demands power equal to more than two Hoover Dams

Oracle disclosed that the OpenAI contract accounts for most of the $317 billion in new business it recently booked. The agreement is scheduled to start in 2027, with revenue increasing as more facilities come online.

To deliver the capacity, Oracle is working with data-center builder Crusoe ...