OpenAI Ramps Up Spending in Historic Tech Deals
OpenAI has signed two blockbuster agreements: a $300 billion cloud partnership with Oracle, among the largest in history and set to launch in 2027, and a $10 billion AI chip contract with Broadcom. The deals highlight the escalating infrastructure race in AI.

Following a $40 billion funding round, OpenAI’s valuation hit $300 billion and could soon reach $500 billion via a $6 billion stock sale. Despite $10 billion in yearly revenue, the firm anticipates $60 billion in annual costs, projecting no profitability until 2029.

Sam Altman’s roadmap includes scaling to over 1 million GPUs by year-end and building the Stargate project, a $500 billion effort featuring a massive Indian data center. Investor response was strong: Oracle surged 40%, adding $100 billion to Larry Ellison’s wealth, while Broadcom rose 5% on confirmation of the deal.