Oracle shares surged in after-hours trading on Wednesday following reports that the company has secured several multibillion-dollar contracts, including what could become one of the largest cloud computing deals in history.

According to the Wall Street Journal, OpenAI has signed an agreement to purchase around $300 billion worth of computing power from Oracle over five years, with purchases expected to begin in 2027.

If confirmed, the deal would rank among the biggest cloud computing contracts ever signed.

Deepening Partnership Between Oracle and OpenAI

Oracle has already been collaborating with OpenAI, which began using its cloud infrastructure in mid-2024. The new deal would significantly deepen their relationship and marks another step by OpenAI to diversify its cloud partnerships beyond Microsoft Azure, which had long been its primary provider.

OpenAI started moving away from exclusive reliance on Microsoft in January, shortly before joining Oracle and SoftBank in Project Stargate, a plan to invest $500 billion in U.S.-based data center infrastructure over the next four years.

Foxconn and SoftBank to Build Stargate Equipment

As part of Project Stargate, Foxconn and SoftBank will manufacture equipment for new data centers in Ohio, according to the Journal. The facilities are expected to support OpenAI’s rapidly expanding need for computing power to train and deploy its advanced artificial intelligence models.

Industry analysts say the agreement reflects OpenAI’s aggressive push to secure massive computing resources as competition intensifies with rivals like Google and Anthropic.

Broader AI Cloud Race

OpenAI also signed a separate cloud services agreement with Google earlier this year, Reuters reported, despite the two companies competing for dominance in the AI sector.

Analysts say the deals illustrate OpenAI’s strategy of securing multi-cloud capacity to support future AI workloads and reduce reliance on any single provider.