OpenAI has formally confirmed that it is the client of Oracle’s recently revealed $30 billion annual cloud services contract, which is one of the biggest infrastructure deals in the technology industry to date.
This historic agreement will support OpenAI’s aggressive plans to grow its artificial intelligence (AI) infrastructure, which include plans to produce over 2 million chips and create up to 100,000 jobs in operations and construction across the US.
The confirmation puts an end to weeks of intense speculation after Oracle’s ambiguous SEC filing in late June, which disclosed an unprecedented cloud service deal without identifying the partner.
Later, OpenAI CEO Sam Altman acknowledged the details of the deal, which is a key component of the larger “Stargate” project, a $500 billion, multi-year endeavor to develop next-generation AI computer infrastructure.
“It’s easy to throw around numbers, but this is a gigantic infrastructure project,” OpenAI CEO Sam Altman stated, emphasizing the sheer scale of the undertaking.
OpenAI is investing ahead of demand, a strategy likened by industry experts to early cloud investments made by Amazon Web Services (AWS).
