OpenAI has officially signed a$30 billion annual agreement with Oracle to expand data centre capacity in the United States. Confirmed by OpenAI CEO Sam Altman on 22 July, the deal supports building 4.5 GW of new capacity at Texas's Stargate I site.

The deal represents a significant investment in US infrastructure, with OpenAI stating the project will create new jobs and boost the country's economic prospects.

Oracle CEO Safra Catz revealed the company spent$21.2 billion on capital investments last year. A further$25 billion is planned for the current fiscal year, mainly for data centres.

Oracle disclosed in an SEC filing that it signed a$30 billion cloud agreement, although it initially withheld the client's name. The announcement drove Oracle's share price to record highs, pushing its founder Larry Ellison to the position of the world's second richest person.

OpenAI's own recurring revenue has jumped from$5.5 billion to$10 billion in the past year. However, this single deal with Oracle triples that figure, raising questions about how OpenAI will manage such massive infrastructure commitments going forward.