Oracle Corp. has won a cloud contract worth over $30 billion annually, sending its shares up 9% initially before settling for a 4% gain. The company, which began its new fiscal year on April 1, disclosed the news in a regulatory filing.
According to CEO Safra Catz, the deal is expected to contribute more than $30 billion in annual revenue starting from 2028. However, the identity of the buyer remains unknown, with OpenAI being the most likely candidate due to its recent partnership with Oracle on Stargate, an AI data center project valued at up to $500 billion.
Few organizations can afford to spend such large amounts on cloud services, but companies like Meta Platforms Inc. and Microsoft Corp. build their own data centers. In contrast, Oracle’s entire infrastructure cloud services business generated $24.64 billion in revenue last year, which is close to the value of the new contract.
The company has been investing heavily in its cloud infrastructure, with capital expenditures tripling from $7 billion in 2024 to over $21 billion last year. As part of Project Stargate, Oracle is building a sprawling AI data center campus for OpenAI, and the company projects that its cloud infrastructure revenue will grow more than 70% this year.
This new deal is expected to help Oracle exceed its sales goal of generating $104 billion in 2029. With this contract, Oracle takes its first step into the lucrative market of high-end cloud services, which could generate billions of dollars in annual revenue.
Source: https://siliconangle.com/2025/06/30/oracle-wins-cloud-contract-expected-generate-30b-annual-revenue