OpenAI agreed to pay Oracle $30B a year for data center services

Sam Altman has confirmed that OpenAI is the client in a $30 billion-per-year Oracle data center deal made public in late June. The CEO disclosed the partnership via social media and the company’s blog, though he declined to verify the reported sum.

Oracle’s SEC filing described a multi-billion-dollar annual contract without naming the buyer, spurring speculation. The announcement pushed Oracle’s stock to record levels and boosted Larry Ellison’s position among the world’s richest individuals.

OpenAI says the agreement secures 4.5 gigawatts of capacity as part of Stargate, a $500 billion project announced with Oracle and SoftBank in January. SoftBank is not a party to this particular deal.

Altman has said OpenAI’s annual recurring revenue recently reached $10 billion, highlighting the unprecedented scale of the Oracle contract.

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