Redwood Shores, California, September 12, 2025- Oracle has signed a landmark USD 300 billion cloud computing deal with OpenAI, one of the largest cloud contracts in history, in a move that reshapes the balance of power in the global cloud market. Spanning about five years, the agreement will give OpenAI vast computing capacity to accelerate the training and deployment of its most advanced AI models.
The deal marks a major diversification of OpenAI’s infrastructure, as the company reduces its reliance on Microsoft Azure, where it began scaling back earlier this year. Oracle, in turn, has positioned itself as a direct challenger to both Azure and Amazon Web Services in the high-stakes race to dominate AI-driven cloud infrastructure.
Alongside OpenAI, Oracle also disclosed four additional multi-billion-dollar cloud contracts, sharply boosting its cloud bookings. The announcements sent Oracle’s stock soaring more than 30 percent, briefly pushing its market valuation near the USD 1 trillion mark. The surge added billions to CEO Larry Ellison’s personal wealth, moving him closer to Elon Musk at the top of the global rich list.
Industry analysts noted the scale of the OpenAI contract rivals the energy output of two Hoover Dams, underlining the massive compute requirements behind OpenAI’s “Project Stargate” and future AI models. The deal underscores the intensifying demand for cloud infrastructure capable of supporting resource-hungry AI workloads.
With Oracle emerging as a critical partner for one of the most influential AI developers, the agreement signals a broader competitive shift in the cloud market. What began as a two-horse race between Microsoft Azure and AWS is increasingly opening to new contenders, with Oracle gaining momentum as AI pushes the industry into uncharted territory.
