Oracle Secures $30 Billion AI Cloud Deal

By Betsy Burton

 

Oracle Secures $30 Billion AI Cloud Deal

July 1, 2025, Oracle Corporation announced a monumental cloud services agreement valued at over $30 billion annually, set to begin contributing revenue in fiscal year 2028.

While Oracle’s initial regulatory filing did not name the client, widespread speculation and subsequent reports confirm that this groundbreaking deal is with OpenAI, as part of the ambitious Stargate project.

This long-term contract will have a significant impact on Oracle, significantly bolstering its position in the AI cloud infrastructure market.

Details of the Deal

The core of this $30 billion deal is a commitment from Oracle to provide substantial cloud infrastructure to OpenAI. This includes a data center capacity reportedly totaling around 4.5 gigawatts of power.

• The agreement is a key component of the broader Stargate initiative, a $500 billion infrastructure project involving OpenAI, Oracle, and SoftBank, aimed at building a global network of AI data centers.
• Oracle’s involvement focuses on leasing data center buildouts and populating them with critical resources like NVIDIA GB200 GPUs for resale to hyperscalers, alongside its Oracle Cloud Infrastructure (OCI).
• Oracle is reportedly spending around $40 billion on NVIDIA’s high-performance chips to power these new data centers further demonstrates the scale of its investment and commitment.

It is critical to acknowledge that while this agreement is a firm contractual commitment, its long-term nature, extending to Oracle’s fiscal year 2028 and beyond, introduces inherent future uncertainties. The rapidly evolving AI landscape, combined with the potential for shifts in corporate strategies, technological advancements, or unforeseen market dynamics, means that even robust agreements can face challenges. Both Oracle and OpenAI will need to navigate these evolving conditions to ensure full realization of this ambitious partnership.

Impact on Oracle and OpenAI

This $30 billion agreement marks a significant strategic victory for Oracle. It transforms the perception of Oracle Cloud Infrastructure (OCI) from a niche player to a significant contender in the high-stakes AI infrastructure race.

The deal nearly triples Oracle’s 2025 cloud revenue of $10.2 billion by fiscal 2028, potential to fundamentally reshape Oracle’s financial landscape.

For OpenAI, diversifying its infrastructure providers beyond a single dominant partner like Microsoft is a crucial step in ensuring resilience and optimizing its compute resources. This partnership also highlights the escalating demand for specialized AI infrastructure, pushing cloud providers to rapidly expand their data center footprints and invest heavily in advanced hardware.

Bottom Line

Oracle’s $30 billion cloud deal with OpenAI is a significant deal for Oracle in terms of revenue for their Cloud infrastructure and in terms of boosting Oracle’s standing as a major player in the AI infrastructure cloud market.

Clients must monitor Oracle’s continued expansion in cloud and AI and the evolution of this deal as it will have a big impact on traditional non-Oracle customers considering OCI as a viable and increasingly powerful platform for AI initiatives and data-intensive workloads.

 

 

 

 

UPCOMING WEBINAR

 

 

Trends in Corporate Learning: AI Assistants are Here (to Help)

Learning is still a challenge for enterprises. However, the challenge does not end with training employees. In the age of AI, Learning Assistants can help to train people in a variety of ways, and they can also serve as a knowledge base for training AI Agents. In this webinar, Jim Lundy discusses the latest trends in Learning and why the race for outcomes is still the biggest challenge managers face. Key things being covered:

• What are the key trends driving learning, and what is the role of the LMS and Learning Content?
• What are AI Assistants, and how are they impacting Learning?
• What role do AI Coaches play in the race to better outcomes?
• How can enterprises gain a competitive advantage by changing how they train?

 

Register Today