OpenAI reportedly on the hook for $300B Oracle Cloud bill

OpenAI will pay Oracle $300 billion over the course of five years to fuel Sam Altman's AI ambitions by providing five gigawatts of compute capacity.

At least that's what unnamed sources familiar with the matter tell the Wall Street Journal, which reports that the contract is set to begin in 2027, giving the AI startup a little over a year to figure out how or perhaps who's going to be left holding the bill when it falls due.

As it stands, OpenAI can't afford the checks it's writing. As of June, the AI flag bearer has annual recurring revenue of $10B. To be clear, that's revenue. The company isn't expected to turn a profit until at least 2029. Perhaps SoftBank is about to open its wallet after reportedly agreeing to chip in $19B to the OpenAI-led Stargate project that aims to build a ...