OpenAI and Oracle sign $300 billion computing power agreement

PANews reported on September 11th that the Wall Street Journal, citing people familiar with the matter, reported that OpenAI has signed an agreement to purchase $300 billion worth of computing power from Oracle (ORCL.N) over approximately five years, a massive commitment far exceeding its current revenue levels. The deal is one of the largest cloud service contracts ever, reflecting that spending on AI data centers continues to climb to new highs despite growing market concerns about a potential bubble in the artificial intelligence field. The contract will require 4.5 gigawatts of power capacity, roughly equivalent to the power generated by more than two Hoover Dams, or the electricity consumption of approximately four million households. After Oracle disclosed on Wednesday that it had added $317 billion in future contract revenue for its latest fiscal quarter ending August 31st, the company's stock price soared 42% that day, but the increase has now narrowed to 36%. CEO Safra Catz said the company signed contracts with three different customers during the quarter.