In a groundbreaking development that reshapes the landscape of cloud infrastructure, OpenAI has confirmed a monumental agreement with Oracle, estimated to be worth $30 billion annually. OpenAI CEO Sam Altman referred to the partnership as a “gigantic infrastructure project” in a recent post on X (formerly Twitter), highlighting the unprecedented scale of the deal.
The scale of this agreement first surfaced in Oracle’s June 2025 SEC filings, which disclosed an unnamed customer contract projected to generate $30 billion in annual revenue—surpassing Oracle’s total global cloud revenue of $24.5 billion for FY2025. OpenAI’s confirmation has now linked this record-breaking figure to its own data infrastructure ambitions, particularly tied to the expansion of its Stargate initiative.
A Transformational Moment for Oracle
The deal is expected to more than double Oracle’s cloud infrastructure business, elevating the company alongside hyperscale leaders such as Amazon Web Services, Microsoft Azure, and Google Cloud. Analysts note that the agreement signals Oracle’s aggressive positioning as a key enabler of AI compute infrastructure on a global scale.
To put the size of the deal into perspective, traditional enterprise data center leases range between 1–50 megawatts (MW), with annual costs typically between $10 million and $500 million. OpenAI’s lease reportedly involves 4,500 MW—an unprecedented scale that translates into infrastructure costs far beyond any prior contracts in the industry.
The Stargate Context
The Oracle–OpenAI agreement gains further importance amid delays plaguing Stargate, a massive infrastructure initiative first unveiled at the White House in January 2025. Initially promoted as a $500 billion project aimed at generating over 100,000 jobs, Stargate has yet to finalize a single data center due to internal disputes, particularly between OpenAI and SoftBank regarding financial structuring and site selection.
In response to these setbacks, OpenAI has accelerated its infrastructure buildout independently. Alongside Oracle, the company has signed additional partnerships with cloud providers like CoreWeave to meet the compute demands of its next-generation AI models.
Redefining the Future of Cloud Infrastructure
This historic deal signals a seismic shift in cloud infrastructure strategy, driven by the rising demands of AI innovation. As foundation models continue to grow in complexity and computational requirements, companies like OpenAI are increasingly seeking custom-built, high-performance infrastructure—far exceeding the capabilities of traditional cloud models.
With this $30 billion annual agreement, Oracle now holds the largest cloud contract ever disclosed, redefining benchmarks for the industry and opening a new era in hyperscale AI infrastructure.
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