OpenAI confirms massive $30B-a-year data deal with Oracle

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OpenAI has confirmed that it’s the company behind a massive $30 billion-per-year deal with Oracle for data center services. 

While Oracle mentioned the deal in a filing in June, it didn’t say who the customer was. 

That mystery has now been solved, with OpenAI CEO Sam Altman confirming the news on social media and in a blog post, though he didn’t mention the exact dollar amount.

we have signed a deal for an additional 4.5 gigawatts of capacity with oracle as part of stargate. easy to throw around numbers, but this is a _gigantic_ infrastructure project.

some progress photos from abilene: pic.twitter.com/JfutuoYvn9

— Sam Altman (@sama) July 22, 2025

This is a huge deal, not just in size but in significance. For context, Oracle made $24.5 billion from all its cloud customers combined last year. 

So this one contract with OpenAI is bigger than all of Oracle’s other cloud business put together. 

When Oracle revealed the deal last month, its stock price jumped to a record high, and its founder, Larry Ellison, became the world’s second-richest person.

The deal is part of something much bigger called “Stargate,” a $500 billion mega-project launched by OpenAI, Oracle, and SoftBank earlier this year. 

Stargate aims to build massive new data centers to support the growing demand for AI technology. 

This specific Oracle-OpenAI deal covers 4.5 gigawatts of power capacity for data centers, roughly the same amount of energy produced by two Hoover Dams, or enough to power four million homes.

The first major site for this effort is being built in Abilene, Texas, and it’s called “Stargate I.” While this deal is a big win for Oracle on paper, it’s not simple. 

The data centers still need to be built, and that takes a huge amount of money, energy, and time.

Oracle has already spent over $21 billion building out its infrastructure last year and plans to spend another $25 billion this year, nearly $50 billion in two years, mostly on data centers. 

That spending isn’t just for OpenAI, but this new deal clearly plays a big role.

Interestingly, OpenAI recently reached $10 billion in annual revenue, which is impressive. 

But this one $30 billion yearly deal with Oracle is triple that amount, and doesn’t even account for the rest of OpenAI’s costs, like other data centers and operations.

Do you think the $30 billion annual deal between OpenAI and Oracle shows healthy investment in AI infrastructure? Or is this level of spending unsustainable and creating an AI bubble? Tell us below in the comments, or reach us via our Twitter or Facebook.