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In a monumental move, OpenAI is poised to invest $300 billion in Oracle cloud computing services over the next five years, solidifying its computational infrastructure for future AI advancements. This massive deal, initially reported by the Wall Street Journal, is tied to ‘Project Stargate,’ a large-scale initiative involving Softbank and reportedly, former President Trump, aimed at constructing data centers powered by a staggering 4.5 gigawatts of energy.

The agreement, expected to commence in 2027, underscores OpenAI’s ambitious growth trajectory. The company anticipates generating $12.7 billion in revenue this year. This cloud deal complements another reported $10 billion commitment from OpenAI to Broadcom for the development of custom AI chips. Oracle’s CEO Safra Catz previously revealed that her company secured “four multi-billion-dollar contracts” with three undisclosed companies during Q1, contributing to a remarkable 77% surge in cloud infrastructure revenue. This quarter also saw Oracle accumulate over $317 billion in new future contract revenue, signaling strong demand for its cloud offerings.