OpenAI has signed a five-year contract with Oracle to purchase computing resources worth about $300 billion. This deal is one of the largest in the cloud services market. It reflects the rapid growth of spending on IT infrastructure for artificial intelligence, The Wall Street Journal reports, citing sources.
On the eve, Oracle reported an increase in projected future contract revenues by $317 billion, and the company’s CEO, Safra Katz, announced the signing of agreements with three large customers.
Against this background, Oracle shares jumped up to 43%. The fortune of Chairman of the Board of Directors Larry Ellison, according to estimates, increased by more than $100 billion, to almost $400 billion.
For Oracle, this deal means a high concentration of future revenues from one client and the need to boost investments in infrastructure. The company already has a higher debt load compared to competitors such as Microsoft.