Observed Signal · Jul 23, 2025 · Partnership · Source: Trending Topics · Impact: 3/5 · Sentiment: Positive
OpenAI to pay Oracle $30B annually for data center services
OpenAI has entered into a data center services contract with Oracle valued at approximately $30 billion per year, according to TechCrunch. Oracle had disclosed the cloud deal in an SEC filing on June 30, 2025, without naming the customer, which sent its stock to an all-time high. OpenAI confirmed it is the client, specifying the contract covers 4.5 gigawatts of capacity as part of Stargate, the $500 billion data center construction project announced in January by OpenAI, Oracle, and SoftBank. SoftBank is not involved in this particular agreement. The infrastructure will be built at the Stargate I site in Abilene, Texas. Oracle reported $24.5 billion in cloud services sales in its fiscal 2025, making the OpenAI deal larger than its total annual cloud revenue. OpenAI CEO Sam Altman recently stated the company reached $10 billion in annualized revenue, meaning the Oracle commitment is three times that amount.
The $30B/year data center deal between OpenAI and Oracle represents a massive scaling of AI infrastructure, which underpins the next generation of AI-driven advertising and marketing technology. It also signals growing concentration of cloud compute capacity among a few hyperscale providers.
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Key Takeaways & Evidence Grounding
- OpenAI signed a data center services contract with Oracle worth $30 billion per year.
- Oracle disclosed the cloud deal in an SEC filing on June 30, 2025, without naming the client.
- The deal covers 4.5 gigawatts of capacity as part of the Stargate project.
- Stargate is a $500 billion data center construction project announced by OpenAI, Oracle, and SoftBank in January 2025.
- SoftBank is not part of the $30 billion annual Oracle deal.
Connected Companies & Entities
5 Entities mapped“On June 30, Oracle announced in an SEC filing that it had signed a cloud deal generating $30 billion in annual revenue....”
“OpenAI has signed a contract with Oracle for data center services worth $30 billion per year....”
“SoftBank is apparently not involved in the $30 billion deal, but is part of the Stargate project....”
“The deal was reported by TechCrunch....”
“According to Bloomberg, the news made Oracle founder Larry Ellison the second-richest person in the world....”
Ontology Mapping & Concepts
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