Oracle Signs Landmark Cloud Deal with OpenAI Worth $300 Bn, Making Larry Ellison the Richest Man in the World

Oracle has agreed to provide OpenAI with $300 billion worth of compute power over five years, starting in 2027. Oracle’s stock surged after markets closed yesterday following the report by The Wall Street Journal.

Simultaneously, Oracle founder Larry Ellison reclaimed—or briefly seized—the title of the world’s richest person after Oracle shares exploded on news of massive AI cloud contracts. His net worth jumped by roughly $100 billion, landing him at an estimated $392.6 billion, reportedly pushing past Elon Musk at one point. Ellison owns around 41% of Oracle, so his fortunes are deeply tied to the company’s performance.

If confirmed, the deal with OpenAI would rank among the largest cloud contracts ever signed. This is not the first time the two companies have worked together.

OpenAI began using Oracle’s cloud infrastructure in 2024, as it expanded beyond its deep reliance on Microsoft Azure. Earlier this year, OpenAI, Oracle, and SoftBank also pledged $500 billion to the Stargate Project, an ambitious plan to build domestic data centers over the next four years.

The reported deal underscores OpenAI’s insatiable demand for compute power as it pushes ahead in the race to dominate AI. In fact, the company also struck a cloud agreement with Google this spring, despite the two firms competing head-to-head in artificial intelligence development.

The San Francisco-based startup expects its cumulative cash burn to soar to $115 billion by 2029. The revised figure marks an $80 billion jump from earlier forecasts, underscoring the massive infrastructure demands of scaling its flagship ChatGPT platform.