OpenAI Signs $300 Billion Five-Year Deal with Oracle Despite $5 Billion Loss
Summary
OpenAI signs massive $300 billion five-year cloud infrastructure deal with Oracle despite posting $5 billion loss in 2024, as ChatGPT reaches 800 million weekly users and companies plan joint deployment of 10 gigawatts of custom AI processors.
Key Points
- Oracle CEO Clay Magouyrk expresses confidence that OpenAI can afford $60 billion annually for cloud infrastructure, citing the company's rapid growth to nearly a billion users despite recording a $5 billion net loss in 2024
- OpenAI signs a five-year deal with Oracle worth over $300 billion while ChatGPT reaches 800 million weekly active users, with Oracle integrating OpenAI models into healthcare electronic records systems
- Oracle and OpenAI announce joint deployment of 10 gigawatts worth of custom AI processors built by Broadcom, as Oracle shares rise 5% and gain 84% year-to-date approaching $900 billion market cap