Oracle wins cloud contract expected to generate $30B+ in annual revenue

Oracle Corp. today disclosed that it has won a cloud contract worth more than $30 billion annually.

Shares of the company jumped almost 9% on the news at one point. It ended the trading session up 4%.

According to a regulatory filing, the cloud contract is one of several that Oracle has won since April 1, the day its 2026 fiscal year began. “Oracle is off to a strong start in FY26,” Chief Executive Officer Safra Catz stated in the document. “We signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28.”

The value of those other contracts was not disclosed. Oracle also left out key details about the flagship $30 billion-plus agreement, notably the identity of the buyer.

The perhaps most likely candidate is OpenAI. Earlier this year, the ChatGPT developer partnered with Oracle on Stargate, an initiative to build a network of artificial intelligence data centers in the U.S. The project is expected to cost as much as $500 billion over the next four years.

Few organizations can afford to spend $30 billion a year on cloud services. According to The Information, OpenAI expects its annual revenue to reach $125 billion by 2029, which would give the company the financial resources for such a purchase. Other companies that spend tens of billions of dollars annually on cloud infrastructure, such as Meta Platforms Inc. and Microsoft Corp., build their own data centers. 

Oracle didn’t disclose the volume or type of cloud infrastructure that it will provide under the new contract. The company’s entire infrastructure cloud services and license support business generated $24.64 billion in revenue during fiscal 2025, or about $5 billion less than the value of the new contract. This hints that Oracle may have to expand its cloud infrastructure to meet the buyer’s requirements.

As part of Project Stargate, the company is building a sprawling AI data center campus for OpenAI west of Dallas. The ten facilities at the site will reportedly host $40 billion worth of Nvidia Corp. chips. Earlier this year, Oracle disclosed that it’s also building data centers in other locations for the ChatGPT developer.

The company’s capital expenditures tripled from $7 billion in fiscal 2024 to over $21 billion last year. Earlier this month, Oracle executives told investors to expect further spending increases. Founder and Chief Technology Officer Larry Ellison also appeared to preview the $30 billion-plus contract announced today, saying that the company had received an order for “all available cloud capacity.”

Oracle projects that its cloud infrastructure revenue will grow more than 70% this year, up from 52% during the previous 12 months. That momentum is expected to help the company exceed its goal of generating $104 billion in sales during its 2029 fiscal year. 

Photo: Oracle

Enjoy the perfect blend of retro charm and modern convenience with the Udreamer Vinyl Record Player. With 9,041 ratings, a 4.3/5-star average, and 400+ units sold in the past month, this player is a fan favorite, available now for just $39.99.

The record player features built-in stereo speakers that deliver retro-style sound while also offering modern functionality. Pair it with your phone via Bluetooth to wirelessly listen to your favorite tracks. Udreamer also provides 24-hour one-on-one service for customer support, ensuring your satisfaction.

Don’t miss out—get yours today for only $39.99 at Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!