OpenAI signs contract to buy $300 billion worth of Oracle computing power over the next five years — company needs 4.5 gigawatts of power, enough to power four million homes

Larry Ellison in the oval office.

In one of the largest cloud contracts ever signed, OpenAI has inked a deal with Oracle to purchase $300 billion worth of computing power over the next five years, according to WSJ. That's close to 100 times OpenAI's 2024 total revenue, but follows earlier gigantic partnership commitments between the two companies, including Oracle signing on to the $500 billion Stargate data center plan, and plans for another joint data center project announced in July.

The contract between the two companies will begin in 2027, but even with a multi-year lead, there will be great interest in how the two companies fund the monstrous venture. OpenAI's projected 2025 revenue wouldn't even cover half of a single year's worth of payments to Oracle as part of the plan, and Oracle itself will likely need to take on substantial debt to pay for the hardware it will eventually sell on to OpenAI.