Oracle announced the deal in June but did not disclose the customer’s identity or service details. Now, OpenAI CEO Sam Altman has confirmed the agreement’s details, though the financial terms remain undisclosed.
This contract is part of OpenAI’s massive data center project called “Stargate,” announced in January by Oracle, OpenAI, and SoftBank. However, the $30 billion deal is solely between OpenAI and Oracle and does not involve SoftBank.
OpenAI will purchase data center services from Oracle with a capacity of 4.5 gigawatts—equivalent to the output of two large hydroelectric power plants—enough to power approximately four million homes.
The project involves building the “Stargate I” data center in Abilene, Texas. The construction requires significant financial and energy investments.
Over the past two years, Oracle has invested more than $50 billion in data centers, funds that will support both its existing customers and OpenAI’s growing infrastructure needs.
Recently, OpenAI’s annual revenue surged from $5.5 billion to $10 billion. This contract alone exceeds OpenAI’s current annual revenue threefold, marking a crucial step in the company’s future growth.
The deal will enable OpenAI to secure powerful infrastructure for advancing its AI technologies while providing Oracle with significant opportunities in the data center services market.
