OpenAI has disclosed they signed a 30 billion dollar annual deal with Oracle for their data centre services last month, according to reports. Sam Altman, OpenAI’s CEO, has also confirmed the contract in an X post, without divulging much details, on July 22. The same was also shared as a blog post on their website.
we have signed a deal for an additional 4.5 gigawatts of capacity with oracle as part of stargate. easy to throw around numbers, but this is a _gigantic_ infrastructure project.
some progress photos from abilene: pic.twitter.com/JfutuoYvn9
— Sam Altman (@sama) July 22, 2025
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In the blog, the AI firm explained that this deal is for 4.5 gigawatts of additional Stargate data centre capacity in the United States. This new infrastructure will facilitate new jobs in the US and accelerate job prospects for the country.Â
According to Wall Street Journal reports, 4.5 gigawatts of storage is equivalent to two Hoover Dams, enough to power some 400 million homes.Â
This massive data centre by Oracle Stargate still has to be constructed by OpenAI and Oracle. This will be an expensive and energy-intensive build. The centre is being built at Abilene, Texas, location OpenAI refers to as the Stargate I site.
According to a report in June by Safra Catz, CEO of Oracle, the company spent 21.2 billion dollars on capital expenditures in its most recent fiscal year, and plans to spend an additional 25 billion dollars this year. Therefore, in just two years, around 50 billion dollars was mostly spent on data centres. Catz emphasised that this doesn’t include land purchases. To be clear, however, she said that the funding not just supports OpenAI’s objectives but also supports Oracle’s current clientele.
Oracle said in an SEC filing on June 30 that it signed a cloud agreement that would bring in $30 billion annually. The business did not, however, specify who it was associated with or what services it was for. According to Bloomberg, the revelation drove Oracle’s stock to reach an all-time high, making Larry Ellison, the company’s founder and CTO, the second richest person in the world.
People started speculating about who the customer would be and what kind of company could need a new $30 billion data centre service every year. Oracle, on the other hand, declared in June that it has sold cloud services to all of its customers for $24.5 billion in fiscal 2025.
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One other aspect of all of these transactions is that, according to Altman last month, OpenAI’s yearly recurring revenue increased from around $5.5 billion to $10 billion. Even without accounting for all of the company’s other costs, such as its ongoing data centre commitments, this one commitment to Oracle already triples its annual revenue.
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