OpenAI has entered into a landmark agreement with Oracle to purchase $300 billion in computing power over the next five years, according to sources cited by the Wall Street Journal. This deal marks one of the largest cloud service contracts ever, underscoring the escalating investment in AI data centers despite concerns about a potential bubble in the AI sector. The contract will require 4.5 gigawatts of power capacity, comparable to the output of more than two Hoover Dams.
Following Oracle's disclosure of $317 billion in future contract revenue for the fiscal quarter ending August 31st, its stock price initially surged by 42% before settling at a 36% increase. Oracle CEO Safra Catz noted that the company secured contracts with three different customers during the quarter.
OpenAI and Oracle Ink $300 Billion Cloud Computing Deal
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