OpenAI Bets Big on Cloud and Chips
OpenAI is ramping up infrastructure spending with two landmark agreements: a $300 billion contract with Oracle for cloud services, set to begin in 2027, and a $10 billion custom chip order from Broadcom. Both underscore the scale of resources required to power generative AI.

The company, now worth $300 billion after its latest $40 billion raise, is targeting a $500 billion valuation through a $6 billion stock sale. Revenue sits near $10 billion annually, but the company expects steep losses of $60 billion per year, delaying profitability until 2029.

Sam Altman’s ambitions include deploying 1 million GPUs by the end of 2025 and pursuing the Stargate initiative, a $500 billion project anchored by a data center in India. The announcements sent stocks soaring: Oracle jumped 40%, boosting Larry Ellison’s fortune by $100 billion, while Broadcom rose 5%.