The Wall Street Journal revealed a staggering $300 billion, five-year cloud commitment between Oracle and OpenAI, starting 2027.
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The number alone dwarfs typical hyperscaler contracts; it is more than Oracle’s current market cap in annualized terms.
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Market reaction: Oracle stock surged, lifting investor optimism and Larry Ellison’s wealth (Bloomberg Index).
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Yet Barron’s and Fortune highlight the structural risk: no AI startup, even OpenAI, has a proven revenue path to sustain such obligations.
If executed, this deal repositions Oracle as an AI utility provider. If overstretched, it could expose the company to unprecedented single-client dependency.
