OpenAI has reportedly agreed to buy compute power worth $300 billion from Oracle in a five-year-deal that would be one of the biggest cloud computing contracts in history.

According to the Wall Street Journal, which broke the story following Oracle’s earnings announcement on Wednesday, the contract will start in 2027.

In July, OpenAI announced it was sourcing 4.5GW of data center capacity from Oracle at a cost of $30bn a year starting in 2028, but the reported value of the new contract means this yearly cost would double to $60bn. It is not obvious why such a steep increase is necessary, though OpenAI CEO Sam Altman has said he expects the company to spend "trillions" on infrastructure.

The fortunes of the two companies have become closely entwined since the launch of Stargate, OpenAI’s sprawling data center project in which Oracle is a key partner. The $300bn contract is considered part of Stargate, which will now encompass all of OpenAI’s data center efforts.

In an earnings call on Wednesday, Oracle CEO Safra Catz said the firm had signed “significant cloud contracts with the who's who of AI," including three multi-billion dollar contracts inked in the first quarter of 2025.

Additionally, Catz said that the company now had $455bn in remaining performance obligations (RPO) at the end of its first quarter of fiscal year 2026. It is unclear if this includes the alleged $300bn contract with OpenAI.

While both OpenAI and Oracle have been publicly bullish about their prospects, fulfilling such an enormous contract may prove challenging for both parties.

OpenAI will need to find a vast sum of money each year just to pay for compute resources, far exceeding its current income. The ChatGPT maker said in June it had $10bn in annual recurring revenue, and is sustaining heavy losses. That said, revenue is growing fast, and it reportedly made $1bn in July 2025 alone.

For Oracle, the task will be to get its hands on enough power and hardware to meet OpenAI’s demands, in a market where both are highly valued commodities. The company also has other customers to keep happy, including the likes of Microsoft, which rents vast amounts of Oracle’s cloud infrastructure. Microsoft is also a key backer of OpenAI, though the firms are said to be renegotiating their relationship.

Regardless of how real the deal turns out to be, the news, plus a positive set of financial results, was enough to send Oracle’s share price soaring 43 percent, and briefly made its founder and CTO Larry Ellison the world’s richest man. The stock price rise saw Ellison’s personal fortune grow to $383bn at one point, though it has since dipped slightly, meaning he is once again worth less than Tesla CEO Elon Musk.

DCD has approached Oracle and OpenAI for comment on the report.