Oracle Stock Skyrockets 36% After Landmark $300B Cloud Deal with OpenAI

Oracle Corporation's stock experienced an unprecedented surge on September 10, 2025, climbing 36% in a single day following the announcement of a substantial cloud computing contract with OpenAI. This increase marked Oracle's largest single-day gain since 1992, elevating its market capitalization to over $922 billion and temporarily positioning co-founder Larry Ellison as the world's richest person.

The surge was primarily driven by Oracle's disclosure of a $300 billion, five-year agreement with OpenAI, set to commence in 2027. This contract is one of the largest cloud computing deals in history and underscores the escalating demand for AI infrastructure. The agreement will require 4.5 gigawatts of power capacity, comparable to the electricity consumption of approximately four million homes.

In addition to the OpenAI contract, Oracle reported a significant increase in its Remaining Performance Obligations (RPO), reaching $455.3 billion as of August 2025—a 359% rise from the previous year. This growth reflects Oracle's successful acquisition of multi-billion-dollar cloud contracts with other AI industry leaders, including Meta, NVIDIA, and AMD.

The financial markets responded positively to these developments. Oracle's stock price surged by 36% on September 10, 2025, marking its largest single-day gain since 1992. This rally elevated Oracle's market capitalization from approximately $678 billion to over $922 billion. The share price surge also led to a significant boost in Larry Ellison's wealth, temporarily making him the world's richest person, surpassing Elon Musk.

Oracle has ambitious projections for its cloud infrastructure revenue, anticipating growth from $18 billion in fiscal year 2026 to $144 billion by 2030. This outlook reflects the company's strategic positioning in the rapidly expanding AI cloud infrastructure market.

OpenAI's $300 billion contract with Oracle underscores its substantial investment in cloud computing resources. However, this commitment raises questions about OpenAI's financial sustainability, given that its annual revenue is currently around $10 billion, and the company is not expected to turn a profit until 2029.

Historically reliant on Microsoft Azure, OpenAI's new agreement with Oracle signifies a strategic shift towards diversifying its cloud service providers. This move reflects OpenAI's efforts to meet its escalating computational demands.

The collaboration between Oracle and OpenAI is part of the broader "Stargate" initiative, a $500 billion project announced earlier in 2025. This venture aims to construct data centers capable of supporting advanced AI technologies, with Oracle playing a pivotal role in its development.

These developments have significant social and economic implications. The massive investments in AI infrastructure highlight the growing importance of artificial intelligence in various sectors. However, the financial risks associated with such large-scale commitments raise concerns about the sustainability and potential volatility in the tech industry.

Oracle Corporation, headquartered in Austin, Texas, is known for its database software and cloud-engineered systems. OpenAI, founded in 2015, is an artificial intelligence research organization dedicated to promoting and developing friendly AI for the benefit of humanity. Larry Ellison, co-founder and Chief Technology Officer of Oracle Corporation, is recognized for his significant contributions to the tech industry.

In summary, Oracle's recent financial performance and strategic partnerships position the company as a major player in the AI cloud infrastructure market. The long-term impacts of these developments on the tech industry and global economy remain to be seen.