I can't read the article, and I wouldn't be surprised if it would be mentioned: OpenAI has hit $10B ARR just a few weeks ago - which is nothing to sneeze at, but it's at least a magnitude smaller than their expenditures... it's not exactly sustainable economically.
I guess MS (or Oracle) will finally acquihire them in the next half year
> OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years
>The deal is one of the largest cloud contracts ever signed
>The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes.
And where is all of this data center capacity going to come from?
They claim they are gonna overtake gcp, azure, even aws in the next few years while the revenue is not beating the estimate this quarter. The stock popped. Let's see how big the bubble goes
I can't read the article, and I wouldn't be surprised if it would be mentioned: OpenAI has hit $10B ARR just a few weeks ago - which is nothing to sneeze at, but it's at least a magnitude smaller than their expenditures... it's not exactly sustainable economically.
I guess MS (or Oracle) will finally acquihire them in the next half year
I suspect it is exchange of equity for compute credits, because it is not clear where oai would get so much money.
This deal doesn't make any sense to me.
Like Stargate, after looking at the fine prints it will not concretize to anything real money in the end.
I'm glad someone is saying this.
This makes zero business sense to me.
> OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years
>The deal is one of the largest cloud contracts ever signed
>The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes.
And where is all of this data center capacity going to come from?
They are building out a new data center in Texas. Bloomberg did a mini documentary a few months ago about it.
https://youtu.be/GhIJs4zbH0o
If someone wondering - that's about $675m worth of solar panels
4x if you add the rest of hardware, batteries, labour.
The degree to which vibe coding has replaced thoughtful analysis.
They claim they are gonna overtake gcp, azure, even aws in the next few years while the revenue is not beating the estimate this quarter. The stock popped. Let's see how big the bubble goes
Alt link: https://www.nytimes.com/2025/09/10/technology/openai-oracle-...
AI Winter 2.0 will be glorious.
I don't know if the bubble will burst, but the bubble is big.
IDK vibe coders are happily paying $20-500 per month and there's going to be more of them as it improves