OpenAI and Oracle sign a $300 billion computing power agreement

PANews reported on September 11 that OpenAI has signed an agreement to purchase $300 billion in computing power from Oracle (ORCL.N) within about five years, a huge commitment far exceeding its current revenue level, according to the Wall Street Journal, citing people familiar with the matter. The deal, one of the largest cloud service contracts ever, reflects that spending on AI data centers continues to climb to new highs despite growing market concerns about the possible bubble in the field of artificial intelligence. The contract will require 4.5 GW of electricity, roughly equivalent to the power generation of more than two Hoover Dams, or the electricity consumption of about four million households. The company's share price soared 42% on the same day, and now narrowed to 36% after Oracle disclosed its latest fiscal quarter ended August 31 on Wednesday. CEO Safra Catz said the company signed contracts with three different clients in the quarter.