Oracle Stock Surges Over 37% Following $300 Billion OpenAI Computing Deal
According to the Wall Street Journal, OpenAI’s roughly $300 billion, five-year Oracle compute deal would need 4.5 GW; Oracle also disclosed $317 billion in additional future contract revenue as three customers signed last quarter.
The Wall Street Journal, citing sources, reports OpenAI signed an approximately $300 billion compute agreement with Oracle over about five years, among the largest cloud contracts. The deal would require 4.5 GW of power—more than two Hoover Dams or about four million homes. Oracle disclosed $317 billion in additional future contract revenue for the quarter ended Aug. 31. Oracle shares rose as much as 42% intraday before narrowing to a 36% gain; earlier reports cited a 37.72% close at $332.74, indicating a discrepancy. CEO Safra Catz said three customers signed contracts during the quarter.
- Market Capitalization: The total market value of a company's outstanding shares of stock, calculated by multiplying the current share price by the total number of outstanding shares.
- Large Language Model: An AI system, typically based on deep learning techniques, that is trained on vast amounts of text data to understand and generate human-like language.