Recently, OpenAI signed an astonishing contract with Oracle, generating annual revenue of $30 billion, specifically for data center services. This news was first disclosed by The Wall Street Journal, and OpenAI's CEO Sam Altman also confirmed this major news on social media, although he did not reveal the exact amount.

As early as June 30th, Oracle mentioned in a document submitted to the U.S. Securities and Exchange Commission (SEC) that it would enter into a massive cloud service agreement with a client, which is expected to generate $30 billion in annual revenue for the company. However, at that time, the client's identity and specific service content were not disclosed. This news caused Oracle's stock price to surge, reaching a record high, making its founder and chief technology officer Larry Ellison the second richest person in the world.

Robot Data Center AI (2)

For this deal, the market generally speculated which company needed such a large amount of data center services. To provide a reference, Oracle generated a total of $24.5 billion in cloud services for all its customers in fiscal year 2025, which shows how massive the scale of OpenAI's cooperation with Oracle is.

OpenAI revealed in its latest blog that this deal with Oracle involves 4.5 gigawatts of power capacity, which is part of the "Stargate" data center construction project worth $50 billion, jointly announced with Oracle and SoftBank. According to the information, 4.5 gigawatts of power is equivalent to the power generation capacity of two Hoover Dams, enough to power approximately 400,000 homes.

Although this deal represents a huge opportunity for Oracle, achieving this goal will not be easy. OpenAI and Oracle still need to build this massive data center in Abilene, Texas, which will be a costly and energy-intensive task. According to Oracle's CEO Safra Catz, Oracle spent $21.2 billion on capital expenditures in the previous fiscal year, and it is expected to invest another $25 billion this year, meaning that in just two years, their investment in data centers will approach $50 billion.

Notably, OpenAI recently revealed that its annual recurring revenue has reached $10 billion, an increase from $5.5 billion last year. The revenue commitment from this collaboration with Oracle is three times the current income, not including other fees and commitments for existing data centers.