OpenAI and Oracle Seal $300B Cloud Computing Deal for Project Stargate

Published: 11 Sep 2025

Author: Precedence Research

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A leading tech giant OpenAI and Oracle have announced their collaboration, where Artificial Intelligence company will pay nearly $300 billion to oracle for computer power for up to five years. This deal will take shape and is expected to start in 2027. It will be a part of a bigger project known as a stargate. In July oracle and OpenAI announced they were working collaboratively to build huge data centers, and these centers require a lot of electricity of nearly 4.5 gigawatts of power. It was a major part of the stargate project as per company's data revelations. This project involves Softbank and the President of America Donald Trump. Although at that time they didn't reveal the amount that OpenAI would pay to build data centers. Now, it has been disclosed by The Wall Street Journal that the cost was massive, at $300 billion, highlighting its significance on a global level as well.

This deal showed that a significant investment was essential to support the expansion of AI across the globe. OpenAI has made a huge contribution to making AI products globally popular, and it is further anticipated to gain around $12.7 billion this year. This is not only a single contract that OpenAI has dealt with. The company is also responsible for another huge deal of nearly $10 billion with a company called Broadcom that makes chips. This deal would enable OpenAI to develop its own chip for AI systems within the OpenAI firm. These aggressive efforts with substantial investment have shown that OenAI is looking to build its own technology without depending heavily on other sources.

Oracle have also benefitted from this deal as the company just shared their profit report for the first quarter of the year, which is impressive. According to revelations by Oracle’s CEO, Safra Catz, three more companies have signed four huge deals worth billions of dollars, helping to strengthen Oracle’s base globally. These deals have hugely impacted on the cloud infrastructure of Oracle, and reportedly, it has increased by up to 77% this year. Oracle has added more than $317 billion in future money with the help of new contracts in the first quarter, which made Oracle’s stock price go way up.