OPENAI agreed to pay Oracle $ 30 billion a year for data center services

Openai was the company which signed an agreement of $ 30 billion per year with Oracle for data center services, disclosed last month, The Wall Street Journal reported on Monday. Now, the CEO of Openai, Sam Altman, confirmed the details of the contract (but not the amount in dollars) A post X Tuesday and A corporate blog article.

To summarize on June 30, Oracle revealed A dry file that he had signed a cloud agreement that would generate $ 30 billion a year of income. However, the company did not say with whom it was or for what services. The news has achieved a record level of Oracle, which makes its founder and CTO, Larry Ellison, the richest second in the world, According to Bloomberg.

Speculation on identity The customer follows while people wondered which company might need a new $ 30 billion a year in data center services. For comparison, Oracle has collectively sold $ 24.5 billion in cloud service during its 2025 financial year to all combined customers, He reported in June.

OPENAI has now explained that this oracle transaction is 4.5 capacity gigawatt in the context of Stargate, the Data-Center construction project of $ 500 billion OPENAI, Oracle, And SoftBank announced in January. (Apparently, the $ 30 billion agreement does not imply the gentle bank.)

The WSJ reports that 4.5 gigawatts is the equivalent of two Hoover dams, enough power for around four million houses.

It is not a simple victory for Oracle. OPENAI and Oracle must still build this Monster data center, which will be an expensive company, both in cash and in energy. They do it in what Optai called the Stargate I site in Abilene, Texas.

Meanwhile, Oracle spent $ 21.2 billion on capital expenditure during his last financial year, CEO Safra Catz reported in JuneAnd he plans to spend an additional $ 25 billion this year, she said. Thus, nearly $ 50 billion, widely spent in data centers (and that does not include land purchases, she said) in two years. Although, to be clear, this money also supports existing Oracle customers, in addition to Openai requests.

A last interesting part to note all of this: last month, Altman said that Optaai recently reached $ 10 billion In annual recurring income, compared to around 5.5 billion dollars last year. This unique commitment to Oracle is already triple per year what it currently brings and does not include all the other expenses of the company, including its current commitments in the data center.