OpenAI bets $300 billion on Oracle contract to power artificial intelligence expansion despite ongoing losses (www.techradar.com)

OpenAI has struck a staggering five‑year, $300 billion deal with Oracle to buy cloud computing capacity beginning in 2027 — one of the largest cloud agreements ever. The contract requires roughly 4.5 gigawatts of power capacity (comparable to supplying about four million homes) and is expected to materially reshape how OpenAI builds and runs large models by giving it massive dedicated infrastructure outside Microsoft Azure. Oracle immediately disclosed the business as part of $317 billion in future contract revenue, sending its stock up over 40% and dramatically boosting founder Larry Ellison’s net worth. The pact underscores both the ambition and peril of the AI infrastructure arms race. For OpenAI it diversifies compute supply but locks the company into roughly $60 billion per year in obligations while it remains unprofitable and doesn’t expect profit until 2029. Oracle will need heavy borrowing to finance chips, servers and data‑center buildout. The deal therefore hinges on continued explosive adoption of ChatGPT and enterprise AI; analysts warn it could either cement OpenAI’s dominance or leave both parties overexposed if demand falls short. Industry spending on chips, servers and data centers is projected to hit $2.9 trillion by 2028, illustrating how this agreement amplifies the sector’s high‑stakes bet on future AI growth.