OpenAI Invests Billions in Cloud and Chips
Reports confirm OpenAI has signed a $300 billion Oracle cloud deal, one of the biggest in tech, due to start in 2027, and a $10 billion Broadcom order for AI chips. The contracts reflect the scale of infrastructure needed to support AI growth.
The firm’s valuation stands at $300 billion, up from its $40 billion raise, and could soon hit $500 billion through a new stock offering. Despite $10 billion in annual revenue, projected $60 billion yearly costs mean losses until at least 2029.
CEO Sam Altman is pushing for rapid GPU scaling — 1 million online by year-end — and progressing the $500 billion Stargate plan, anchored by an Indian data center. Following the news, Oracle shares jumped 40%, while Broadcom rose 5%.
