Oracle Corporation (Oracle), a leading U.S. enterprise software company, has inked a massive 300 billion USD deal with OpenAI, according to a Wall Street Journal (WSJ) report on Wednesday.
The WSJ, citing sources close to the matter, revealed that Oracle will provide computing power to OpenAI over the next five years under this landmark 300 billion USD agreement.
This deal, the largest cloud computing contract to date, underscores the ongoing surge in artificial intelligence (AI) data center investments by American firms, even as concerns about a potential bubble grow.
The contract is expected to consume approximately 4.5 gigawatts of power—equivalent to the output of more than two Hoover Dams or the electricity used by roughly 4 million households.
Following the news, Oracle’s stock climbed 1.49% in after-hours trading, reaching 333.21 USD.
Earlier, the stock had soared 35.95% during regular trading hours, following Oracle’s unexpected earnings report.
Although Oracle’s earnings per share and revenue slightly missed market expectations in the report released after market close,
Chief Executive Officer (CEO) Safra Catz highlighted a remarkable 1,529% revenue surge in the cloud database segment last quarter, driven by soaring demand for AI servers.
Catz projected Oracle’s cloud-related revenue to jump 77% to 18 billion USD this fiscal year, with further increases to 32 billion USD, 73 billion USD, 114 billion USD, and 144 billion USD over the next four years.
This news propelled Oracle’s stock to close approximately 36% higher during regular trading.