One of the largest investments ever made in the field of artificial intelligence has been realized. OpenAI has signed a massive $300 billion cloud agreement with Oracle, considered one of the largest IT contracts in history. According to the latest information, this agreement will begin in 2027 and continue for five years.

Major Collaboration in Artificial Intelligence

The agreement forms the basis of OpenAI’s Stargate project, announced last July in collaboration with SoftBank. It was announced that the project will involve the construction of massive data centers with a capacity of 4.5 gigawatts.

The new agreement clarifies OpenAI’s payment for this infrastructure. This major collaboration is just one part of OpenAI’s hardware efforts. It’s also reported that the company has signed an additional $10 billion agreement with Broadcom to design its own AI chips. These moves demonstrate OpenAI’s desire to establish a strong position in hardware as well as software.

This major collaboration has also had significant impact on Oracle. While announcing its quarterly results, CEO Safra Catz announced the signing of “four multi-billion dollar contracts” with three different companies.

Oracle’s cloud revenues reportedly increased by 77 percent this year, and it reportedly added over $317 billion in future contract revenue in the first quarter alone. These developments have rapidly boosted the company’s stock value and made Oracle founder Larry Ellison the second-richest person in the world.