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OpenAI bets big: $300B Oracle cloud deal is 6x its annual revenue
['Michael Anthony Bitoon', 'Fact Checked', 'Sophia Feona Cantiller']
GreenBot | AI News, Hacks, Apps, Tips & Reviews Blog
The five-year deal requires OpenAI to pay Oracle an average of $60 billion annually starting in 2027.
That’s six times more than OpenAI’s current $10 billion yearly revenue, according to the Wall Street Journal.
Oracle’s stock surged 43% Wednesday after announcing $317 billion in new future contract revenue, largely from this deal.
The agreement will provide 4.5 gigawatts of computing power.
The contract officially starts in 2027, giving OpenAI just over a year to arrange financing for history’s largest cloud computing commitment.
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