- OPENAI signs an oracle contract of $ 300 billion from 2027 to increase the capacity of AI
- Oracle shares jump more than 40% after declaring $ 317 billion in future income
- Deal increases the risks while Optai loses money and Oracle takes a heavy debt
OPENAI has signed a contract with Oracle to buy a calculation power of $ 300 billion over the next five years, according to the Wall Street Journal.
This makes it one of the biggest cloud offers never concluded.
The contract will start in 2027 and should reshape the way Openai built and manages its artificial intelligence models.
A huge bet
The agreement will require 4.5 gigawatts of electrical capacity, which is sufficient for electricity to provide approximately four million houses.
It shows how the precipitation of the construction of AI data centers leads to new heights in technological expenditure, even if questions remain as to the request will justify such commitments.
Oracle revealed in his latest report on the profits he added $ 317 billion in future contract income during the quarter ending on August 31, partly due to the OPENAI agreement.
The news has sent Oracle on the sky of more than 40% in a single day. This increase has increased the richness of the president of Oracle, Larry Ellison, by more than $ 100 billion, and saw him exceed Elon Musk as the richest person in the world with a net value of almost $ 400 billion.
However, the agreement is not without massive risk for both parties.
For Openai, the agreement provides a new source of computing power after years to count exclusively on the Azure Cloud of Microsoft, but Wsj Said that the company, which said about $ 10 billion in revenues this year, owes Oracle on average $ 60 billion per year under the agreement.
The startup loses money and told investors that he does not expect to make a profit in 2029.
Oracle, on the other hand, will have to take massively to finance the chips and infrastructures of the AI necessary to put the contract.
In addition, as Wsj Report: “The agreement is based on the hypothesis that Chatgpt will continue its explosive growth and will be adopted by billions of people around the world, as well as by large businesses and governments.”
Industry analysts claim that the partnership underlines both the promise and tension of the BOOM of the AI. Expenses on fleas, servers and data centers worldwide should reach 2.9 billions of dollars by 2028.
The question of whether OpenAi’s growth can keep the pace of its commitments is an open question.
