4 ms·

OpenAI, Oracle Sign $300B Computing Deal, Among Biggest in History

39 points by jaredwiener 1y ago

gloryjulio 1y ago
They claim they are gonna overtake gcp, azure, even aws in the next few years while the revenue is not beating the estimate this quarter. The stock popped. Let's see how big the bubble goes
not_your_vase 1y ago
I can't read the article, and I wouldn't be surprised if it would be mentioned: OpenAI has hit $10B ARR just a few weeks ago - which is nothing to sneeze at, but it's at least a magnitude smaller than their expenditures... it's not exactly sustainable economically. I guess MS (or Oracle) will finally acquihire them in the next half year
- riku_iki 1y ago
  I suspect it is exchange of equity for compute credits, because it is not clear where oai would get so much money.
greatgib 1y ago
This deal doesn't make any sense to me. Like Stargate, after looking at the fine prints it will not concretize to anything real money in the end.
- Zamicol 1y ago
  I'm glad someone is saying this. This makes zero business sense to me.
tibbydudeza 1y ago
AI Winter 2.0 will be glorious.
hjouneau 1y ago
I don't know if the bubble will burst, but the bubble is big.
- dzhiurgis 1y ago
  IDK vibe coders are happily paying $20-500 per month and there's going to be more of them as it improves
DebtDeflation 1y ago
> OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years >The deal is one of the largest cloud contracts ever signed >The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes. And where is all of this data center capacity going to come from?
- Bluecobra 1y ago
  They are building out a new data center in Texas. Bloomberg did a mini documentary a few months ago about it. https://youtu.be/GhIJs4zbH0o https://youtu.be/GhIJs4zbH0o
- dzhiurgis 1y ago
  If someone wondering - that's about $675m worth of solar panels 4x if you add the rest of hardware, batteries, labour.
ChrisArchitect 1y ago
Alt link: https://www.nytimes.com/2025/09/10/technology/openai-oracle-data-centers-deal.html?unlocked_article_code=1.k08.C5CA.jVNuGjKLb0A6&smid=url-share https://www.nytimes.com/2025/09/10/technology/openai-oracle-...
adfm 1y ago
The degree to which vibe coding has replaced thoughtful analysis.
pantulis 1y ago
As was said by someone on X, OpenAI doesn't have the money and Oracle doesn't have the GPUs. I'm not saying the agreement does not makes some sense to both parties but at the end of the day this a highly leveraged operation, the money is not there and will need to be raised by both players. So a lot of financial risk is involved. Perhaps they can pull this off because after all they are smart people. But it seems like the free money party is open and others will follow suit until somebody drops the ball and then we'll be back in a crash.

39 points by jaredwiener 1y ago

They claim they are gonna overtake gcp, azure, even aws in the next few years while the revenue is not beating the estimate this quarter. The stock popped. Let's see how big the bubble goes

not_your_vase 1y ago

I can't read the article, and I wouldn't be surprised if it would be mentioned: OpenAI has hit $10B ARR just a few weeks ago - which is nothing to sneeze at, but it's at least a magnitude smaller than their expenditures... it's not exactly sustainable economically. I guess MS (or Oracle) will finally acquihire them in the next half year

riku_iki 1y ago
I suspect it is exchange of equity for compute credits, because it is not clear where oai would get so much money.

greatgib 1y ago

This deal doesn't make any sense to me. Like Stargate, after looking at the fine prints it will not concretize to anything real money in the end.

Zamicol 1y ago
I'm glad someone is saying this. This makes zero business sense to me.

tibbydudeza 1y ago

AI Winter 2.0 will be glorious.

hjouneau 1y ago

I don't know if the bubble will burst, but the bubble is big.

dzhiurgis 1y ago
IDK vibe coders are happily paying $20-500 per month and there's going to be more of them as it improves

DebtDeflation 1y ago

> OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years >The deal is one of the largest cloud contracts ever signed >The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes. And where is all of this data center capacity going to come from?

Bluecobra 1y ago
They are building out a new data center in Texas. Bloomberg did a mini documentary a few months ago about it. https://youtu.be/GhIJs4zbH0o https://youtu.be/GhIJs4zbH0o
dzhiurgis 1y ago
If someone wondering - that's about $675m worth of solar panels 4x if you add the rest of hardware, batteries, labour.

ChrisArchitect 1y ago

Alt link: https://www.nytimes.com/2025/09/10/technology/openai-oracle-data-centers-deal.html?unlocked_article_code=1.k08.C5CA.jVNuGjKLb0A6&smid=url-share https://www.nytimes.com/2025/09/10/technology/openai-oracle-...

adfm 1y ago

The degree to which vibe coding has replaced thoughtful analysis.

pantulis 1y ago

As was said by someone on X, OpenAI doesn't have the money and Oracle doesn't have the GPUs. I'm not saying the agreement does not makes some sense to both parties but at the end of the day this a highly leveraged operation, the money is not there and will need to be raised by both players. So a lot of financial risk is involved. Perhaps they can pull this off because after all they are smart people. But it seems like the free money party is open and others will follow suit until somebody drops the ball and then we'll be back in a crash.