OpenAI agreed to pay Oracle $30B a year for data center services

OPENEY is the company that signed a $ 30 billion contract with Oracle for the Data Center Service published last month, Wall Street Journal Report on Monday. Now, OpenAI CEO Sam Altman confirmed the deal details (but not the dollar amount) Post an X Tuesday and inside Post to an agency blog.

To recover, June 30, Oracle revealed Filing a second That has signed a cloud deals that will earn $ 30 billion a year. However, the company did not say who was for the service. This news hit Oracle’s stock all -time height and its founder and CTO, the second richest man in the world made Larry Ellison, According to Bloomberg.

Imagination On the identity People arrived within the customer as people were thinking that a company may need $ 30 billion in a year in the data center services. For comparisons, Oracle collectively sells a cloud service of $ 24.5 billion to all customers in the fiscal year 2025, It reports In June

Opena now explains that this Oracle deal is for a power of 4.5 GHz as part of Stargate, $ 500 billion Data-Center-Bielding Project OpenAI, Oracle, Oracle, And the softbank announced in January. (Obviously, the softbank is not involved in the $ 30 billion contract))

The WSJ reported that 1.5 gigawatts were equivalent to two hoowe dams, sufficient energy for about four million houses, WSJ reported.

This is not a straight win for Oracle. OpenAI and Oracle still need to build this monster data center, which will be expensive in both cash and energy. They were doing this by Openi Stargate Eye site in Abelle, Texas.

Meanwhile, Oracle has spent $ 21.2 billion for capital expenditure in his last fiscal year, CEO Safra Catz Reported in JuneAnd this is expected to spend $ 25 billion this year, he said. So, about 50 billion dollars, basically spent on data centers (and not included in the land purchase, he said within two years. However, obviously, this money supports Oracle’s existing customers in addition to the opening claim.

A final interesting part to note about all of this: Last month Ultman said OpenAE Recently hits 10 billion In the annual repeated revenue, last year is more than about 5.5 billion dollars. This single promise to Oracle is already triple every year that is currently coming up with and its current data center is not included in the organization’s other expenses.