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To: Les H who wrote (47608)	9/11/2025 10:30:14 AM
From: Les H	Read Replies (1) \| Respond to of 49065

Oracle's massive OpenAI deal raises equally big questions By Diana Goovaerts Sep 10, 2025 Oracle and OpenAI have reportedly struck a five-year, $300 billion cloud computing deal The deal raises questions about how OpenAI will pay but also about what exactly it's buying, analysts said The rapidly shifting AI landscape could well derail the $300 billion Turns out, the mystery partner behind Oracle's previously disclosed $30 billion-per-year cloud deal is OpenAI. Trouble is, the deal, which is reportedly worth $300 billion over the life of the contract, raises more questions than it answers. On Tuesday, the Wall Street Journal reported OpenAI signed a five-year, $300 billion deal to purchase 4.5 gigawatts of cloud compute capacity from Oracle. The contract is set to start in 2027, which coincides with the start of Oracle’s fiscal 2028. The deal is reportedly linked to the pair’s work on the Stargate project. The confirmation of OpenAI as the blockbuster deal partner raises some key questions. First among these is how OpenAI plans to pay as it's only expecting to bring in around $13 billion in revenue in 2025 and not turn a profit until 2029. “There is no doubt that AI revenues will increase dramatically over the next few years, and that AI use will have to be hosted somewhere. So, assuming the market and the VCs/funders don’t collapse, they seem to be willing to almost write OpenAI a blank check,” J. Gold Associates Founder Jack Gold told Fierce. Gold added that hosting their products is a huge expense for OpenAI (see also, OpenAI’s recent $80 billion upward revision of its expected cash burn rate through 2029). But “Oracle gets paid for hosting whether or not OpenAI makes a profit so they are in a great place, assuming OpenAI doesn’t suddenly pull the plug.” more at Fierce Networks Everyone is mimicking Trump's diplomacy, his trade deals, the military spending promised by Europe, tech investments, so on. They can say anything when they can't be held to it later.