OpenAI and Oracle have allegedly finalized a groundbreaking agreement in the realm of cloud computing.

Oracle sent its shares soaring after markets closed yesterday after reporting that it signed multiple multi-billion-dollar contracts with several customers. Now, we have an idea of who those customers might be.

Oracle's shares surged after the market closed yesterday, following the announcement of several multi-billion-dollar contracts with various clients. We now have insights into who these clients may be.

According to the Wall Street Journal, Oracle has entered into an agreement with OpenAI for the AI firm to acquire $300 billion in computing resources over approximately five years, with purchases commencing in 2027.

If the WSJ's information is accurate, this would represent one of the largest cloud contracts ever established. Oracle has chosen not to comment on the matter, and OpenAI has not responded to requests for confirmation or remarks.

Oracle has a history of collaboration with OpenAI, having begun to provide computing resources to the AI company in the summer of 2024. Additionally, in January, OpenAI began to diversify its cloud services, moving away from relying solely on Microsoft Azure.

This shift away from Microsoft coincided with OpenAI's participation in the Stargate Project, where OpenAI, SoftBank, and Oracle have pledged to invest $500 billion in domestic data center initiatives over the next four years.

OpenAI evidently requires as much computing power as possible. Reports from Reuters indicate that the company secured a cloud agreement with Google this spring, despite the competitive landscape between the two firms in the race for AI dominance.