The cloud computing giant announced on Tuesday a jump of some 359% in committed deals for $455 billion in outstanding orders — surprising the market and sending its stock up 35.95% on Wednesday, CNBC reports.
OpenAI in the books
The lion’s share of those orders is now revealed as a compute deal for $300 billion with OpenAI, running over five years and starting in 2027.
The deal would see OpenAI spend some $60 billion per year, which is a big lift for a company that currently earns about $10 billion in annual revenue, the WSJ notes.
OpenAI is, however, counting on explosive growth in the coming years, expecting a revenue of $125 billion by 2029.
Abilene, Texas
The revelation comes just a few months after OpenAI and Oracle announced a new 4.5 gigawatt data center in Abilene, Texas.
That data center is part of the Stargate project run by OpenAI, Softbank and Oracle — which is set to spend some $500 billion on capacity for OpenAI’s compute demand over four years.
Oracle’s stock gained $244 billion in market share in a single day on the positive orders news, and now has a market cap of $922 billion, CNBC reports, making it one of the most valuable companies on the planet.
It also briefly catapulted its founder, Larry Ellison, to be the richest man in the world, with a net worth of $400 billion.
Read more: The Wall Street Journal (might be paywalled), writeups by The Verge and TechCrunch.