OpenAI agreed to pay Oracle $30B a year for data center services

OpenAI agreed to pay Oracle $30B a year for data center services | TechCrunch

OpenAI was the customer that signed the huge deal that Oracle disclosed last month.

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OpenAI has finally owned up to being the mystery customer in Oracle’s blockbuster SEC filing: it signed a $30 billion-a-year deal for 4.5 gigawatts of data-center capacity. Sam Altman confirmed the contract in an X post and blog write-up, revealing it’s part of Stargate—the $500 billion build-out that OpenAI, Oracle and SoftBank announced back in January (though this slice doesn’t involve SoftBank).

That 4.5 GW haul—enough juice for roughly four million homes—will be built at Stargate I in Abilene, Texas, and represents a huge infrastructure gamble. Oracle, fresh off reporting $24.5 billion in cloud sales (and record capex of $21.2 billion last year, with $25 billion planned this year), will shoulder much of the build cost. Meanwhile, OpenAI, which just hit $10 billion in annual recurring revenue, is committing triple its current ARR to this one deal—highlighting just how expensive it is to scale cutting-edge AI.