OpenAI agreed to pay Oracle $30B a year for data center services

OpenAI is the mystery client behind Oracle’s $30 billion-a-year cloud services contract disclosed last month, CEO Sam Altman confirmed Tuesday. He shared the news on X and in a company blog post, stopping short of validating the exact figure.

The arrangement was first mentioned in an SEC filing by Oracle on June 30, which did not name the customer. The filing drove Oracle shares to record highs and made Larry Ellison the second wealthiest person in the world, Bloomberg reported.

OpenAI says the deal provides 4.5 gigawatts of capacity for Stargate, a $500 billion data center build-out with Oracle and SoftBank, though SoftBank is not involved in this contract.

Altman recently revealed OpenAI’s annual recurring revenue is $10 billion, illustrating how the Oracle agreement far exceeds its current earnings.