Oracle, OpenAI Sign $300 Billion Cloud Computing Deal: Report
The contract between the two companies will begin in 2027, the Wall Street Journal reported
OpenAI has signed a contract to purchase $300 billion in computing power over roughly five years from Oracle, according to a report by the Wall Street Journal.
The contract between the two companies will begin in 2027, the Wall Street Journal reported, adding that OpenAI is expecting $12.7 billion in revenue in 2025.
The Information reported last week that OpenAI projected its spending through 2029 may rise to $115 billion, about $80 billion more than previously expected, without providing details on how and when shareholders were informed.
OpenAI is in the process of developing its own data centre server chips and facilities to drive the technologies in an effort to control cloud server rental expenses, according to the Information report.
The company predicted it could spend more than $8 billion in 2025, roughly $1.5 billion more than an earlier projection, Bloomberg said.
Another factor influencing the increased need for capital is computing costs, on which the company expects to spend more than $150 billion from 2025 through 2030, it added.
