OpenAI has confirmed it is the customer behind Oracle’s record-breaking $30 billion annual cloud services deal, a partnership aimed at powering one of the largest AI data center projects ever undertaken. The agreement, which OpenAI CEO Sam Altman acknowledged without specifying the financial details, supports 4.5 gigawatts of capacity for Stargate, a $500 billion AI-focused data center initiative by OpenAI, Oracle, and SoftBank.
Oracle initially disclosed the deal in June through an SEC filing but did not reveal the client’s name. The revelation sparked speculation due to its unprecedented size, surpassing Oracle’s total $24.5 billion cloud revenue from all customers in its 2025 fiscal year. Following the announcement, Oracle’s stock surged to an all-time high, elevating its co-founder Larry Ellison to the world’s second-richest person, according to Bloomberg.
The new infrastructure, described as equivalent in power consumption to two Hoover Dams, is being developed at the Stargate I site in Abilene, Texas. It underscores OpenAI’s immense computing demands as it scales its AI products. However, both companies face significant financial and logistical challenges, with Oracle committing nearly $50 billion over two years to expand data center capacity, excluding land acquisition costs.
This landmark deal also comes as OpenAI reports $10 billion in annual recurring revenue, nearly double last year’s $5.5 billion. Yet, its commitment to Oracle is three times its current revenue, highlighting the aggressive scale of its AI ambitions and infrastructure needs.
The partnership positions Oracle as a critical player in powering next-generation AI technologies while amplifying the pressure on both companies to deliver on one of the most ambitious data center projects to date.
