OpenAI signed a contract to purchase $300 billion in computing power over roughly five years from Oracle ORCL 33.74%increase; green up pointing triangle, people familiar with the matter said, a massive commitment that far outstrips its current revenue.
The deal is one of the largest cloud contracts ever signed, reflecting how spending on AI data centers is hitting new highs despite mounting concerns over a potential bubble. It will require 4.5 gigawatts of capacity, roughly comparable to the power produced by more than two Hoover Dams or the amount consumed by about four million homes.
Oracle shares surged by 42% on Wednesday after the cloud company revealed it added $317 billion in future contract revenue during its latest quarter that ended in Aug. 31. Chief Executive Safra Catz told analysts that it had signed contracts with three different customers during the quarter.
Testing