Oracle Signs Record $30 Billion Cloud Contract with OpenAI
Oracle announced the signing of one of the largest cloud contracts in history, which is expected to generate more than $30 billion in annual revenue starting in fiscal year 2028. This amount significantly exceeds Oracle's current cloud revenue, which reached $24.4 billion in fiscal year 2025, ending May 31. The contract represents nearly three times the company's current cloud revenue.
Although Oracle initially did not disclose the customer's identity in filings with the U.S. Securities and Exchange Commission (SEC), multiple sources have now confirmed that it is OpenAI. This partnership is particularly significant because OpenAI needs more capacity than its primary cloud partner, Microsoft, can provide.
Exceptional Growth in Oracle Shares
The contract announcement on Monday sent Oracle shares up nearly 5 percent to $220.47. Since the beginning of the year, the shares have risen 32 percent, significantly outperforming other major technology companies. This performance reflects growing investor confidence in Oracle's cloud strategy. Oracle CEO Safra Catz told colleagues that the company had made a "strong start" to the new fiscal year and had signed "several major cloud contracts." Catz described the deal as a transformative step that strengthens Oracle's strategic position in the rapidly expanding artificial intelligence infrastructure sector.
The deal is particularly notable because it will not be reflected in Oracle's revenue until fiscal year 2028, indicating a long-term, large-scale infrastructure commitment.
