OpenAI confirms $30 billion per year Oracle deal for massive data center project
OpenAI CEO Sam Altman confirmed a $30 billion per year cloud deal with Oracle. The news first surfaced in an SEC filing from Oracle on June 30, but the client and details were kept secret until now.
Altman verified the partnership in an X post and a company blog. The deal is tied to Stargate—a $500 billion data center build-out by OpenAI, Oracle, and SoftBank announced earlier this year. However, SoftBank isn’t involved in this $30 billion segment. 
The contract covers 4.5 gigawatts of capacity—equivalent to two Hoover Dams—enough to power 4 million homes. The data center will sit at the Stargate I site in Abilene, Texas.
Oracle’s record stock surge and CEO Larry Ellison’s climb to become the world’s second richest were linked to the revelation, which stunned the market given Oracle’s total cloud revenue sat at $24.5 billion for fiscal 2025.
Oracle reported $21.2 billion capital expenditures last fiscal year and expects another $25 billion this year, covering data center builds for OpenAI and other customers.
OpenAI’s current annual recurring revenue hit $10 billion, doubling from $5.5 billion last year. This single Oracle commitment triples that figure — not counting other operational expenses or data center costs.
Safra Catz, Oracle CEO, said much of that spending goes to supporting enormous cloud demands:
"Oracle spent $21.2 billion on capital expenditures in its last fiscal year,
and it expects to spend another $25 billion this year,
largely spent on data centers (and that doesn’t include land purchases)."
The Stargate project marks one of the largest cloud infrastructure commitments ever, signaling how deep OpenAI is willing to invest in infrastructure amid booming AI demand.
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