Openai was the company that signed $ 30 billion a year with Oracle for Data Center Services, which was revealed last month, Wall Street Journal magazine reported on Monday. Now, Openai Sam Altman CEO has confirmed the details of the contract (but not the dollar amount) in a post x On Tuesday and at a company blog post.
To summarize, on June 30, Oracle was revealed to A deposition of sec That he had signed a cloud deal that would create $ 30 billion a year in revenue. However, the company did not say who was with or for what services. The news caused Oracle’s stock to hit a high -end high, making the founder and CTO, Larry Ellison, the second richest person in the world, According to Bloomberg.
Speculation in the identity The customer followed, as people wondered which company might need a new $ 30 billion per year at the data center services. For a comparison, Oracle sold collective cloud services worth 24.5 billion dollars in its 2025 finance to all customers in combination, reported June.
Openai has now explained that this Oracle deal is for 4.5 gigawatts capacity as part of Stargate, the $ 500 billion dollars project, Oracle and Softbank, announced in January. (Obviously the $ 30 billion deal does not include Softbank.)
WSJ reports 4.5 gigawatts is the equivalent of two Hoover Dam, enough power for about four million homes.
This is not a mere victory for Oracle. Openai and Oracle must build this Monster Data Center, which will be a costly effort, both in cash and energy. They do it in what Openai is called Stargate I site in Abilene, Texas.
Meanwhile, Oracle spent $ 21.2 billion on capital expenditure during its latest use, CEO Safra Catz Reported in JuneAnd he expects to spend another $ 25 billion this year, he said. Thus, nearly $ 50 billion, which is largely spent on data centers (and this does not include land purchases, he said) in two years. Although, in order to be clear, this money also supports Oracle’s existing customers, in addition to OpenAi’s requirements.
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One last interesting place to note all this: Last month, Altman said Openai recently hit $ 10 billion in annual repetitive revenue, from about $ 5.5 billion last year. This single commitment to Oracle is already triple annually, the one that is entering today and does not include all other company costs, including current data center commitments.
