Oracle has signed a significant contract with OpenAI, involving major investments in data center development, indicating serious changes in the company’s cloud infrastructure.
Key Agreements between Oracle and OpenAI
Oracle has entered into a contract with OpenAI, which involves the allocation of over 5 gigawatts of computing power. The data centers are expected to be operational by the summer of 2026, with full completion targeted for early 2027. The facility in Shackleford County, Texas, will operate entirely on gas generators, costing over $1 billion per year.
Oracle's Transition to Cloud Technologies
After a long period of internal conflicts and failed projects, Oracle has actively begun developing cloud solutions, particularly the Oracle Cloud Infrastructure. Changes in strategy were prompted by competition from companies like Amazon and Salesforce. The new approach taken by the project team has been a key factor in Oracle's growth in the cloud arena, attracting customers who prefer not to share infrastructure.
Oracle's Future Prospects and Strategies in AI
Under the leadership of Clay Magouyrk, Oracle is aggressively developing its cloud solutions and expanding its scale. Magouyrk improved working conditions for employees, attracting over 600 professionals from Amazon. Oracle has also signed contracts with companies like Zoom and Uber, and continues to discuss potential collaborations with Meta and xAI.
With significant investments in data centers for OpenAI and an increasing presence in cloud computing, Oracle demonstrates confidence in its future in the rapidly evolving artificial intelligence sector.
