Oracle has entered into a five-year agreement with OpenAI, valued at $300 billion, to provide computing resources. The deal, which begins in 2027, requires an estimated 4.5 gigawatts of infrastructure capacity.
In the fiscal quarter ending around September 2025, the company's remaining performance obligations (RPO) surged 359% year-over-year, primarily driven by the OpenAI contract. By mid-2026, Oracle's RPO was estimated between $523 billion and $638 billion.
Following the announcement, Oracle's shares jumped as much as 43%, briefly making founder Larry Ellison the richest person on Earth. The company is also a key computing partner in Project Stargate, a collaborative initiative launched in January 2025 that envisions roughly $500 billion in AI infrastructure spending over several years.
In June 2026, Oracle integrated OpenAI models into its OCI Marketplace, allowing customers to use their existing Oracle Cloud credits for these tools. However, the company has increased its debt levels to finance data center expansion, with some project timelines extending into 2028.