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Snippet: Starting in 2027, Oracle will supply OpenAI with about 4.5 gigawatts of capacity — comparable to the output of two Hoover Dams or enough to power four million homes.

OpenAI has reportedly inked one of the largest cloud computing contracts ever, striking a $300 billion, five-year agreement with Oracle to secure unprecedented computing power for its artificial intelligence models, the Wall Street Journal reported.

Starting in 2027, Oracle will supply OpenAI with about 4.5 gigawatts of capacity — comparable to the output of two Hoover Dams or enough to power four million homes. The scale of the commitment dwarfs OpenAI’s current revenues of roughly $10 billion a year, signaling an extraordinary bet on the long-term growth of its technology.

The announcement triggered a seismic reaction on Wall Street: Oracle’s shares surged nearly 43%, the company’s biggest single-day gain since 1992. The rally boosted Chairman Larry Ellison’s net worth by more than $100 billion, briefly elevating him above Elon Musk and Jeff Bezos on the world’s richest list.

Still, the deal poses significant risks. OpenAI is committing to infrastructure spending far beyond its current earnings, while Oracle must invest heavily to deliver on the colossal supply of cloud and AI capacity — effectively tying its future to one customer.