OpenAI's $300 Billion Oracle Deal Shakes Up AI Infrastructure Landscape

Why the Oracle-OpenAI deal caught Wall Street by surprise | TechCrunch

This week, OpenAI and Oracle shocked the markets with a surprise $300 billion, five-year agreement, part of a surge of new business that sent the cloud provider's stock skyrocketing. But maybe the markets shouldn't have been taken by surprise. The deal is a reminder that, despite Oracle's legacy status, the company still plays a major role in AI infrastructure. On the OpenAI side, the agreement was more revealing than the lack of details suggest. For one, the startup's willingness to pay so much for compute provides a measurement of the startup's appetite -- even if it's unclear where the electricity to power said compute is coming from or how it will pay for it. Chirag Dekate, a vice president at research firm Gartner, told TechCrunch it's clear why both sides were interested in this deal. It makes sense for OpenAI to work with several infrastructure providers, he noted. It also diversifies the company's infrastructure -- spreading out risk among several cloud providers -- and gives OpenAI a scaling advantage compared to competitors. "OpenAI seems to be putting together one of the most comprehensive global AI supercomputing foundations for extreme scale, inference scaling where appropriate," Dekate said. "This is quite unique. This is probably exemplary of what a model ecosystem should look like." Some industry watchers expressed surprise that Oracle was involved, citing the company's diminished role in the AI boom compared to cloud rivals like Google, Microsoft Azure, and AWS. But Dekate argues that observers shouldn't be so surprised: Oracle has worked with hyperscalers before, and provides the infrastructure for TikTok's sizable U.S. business. "Over the decades, they actually built core infrastructure capabilities that enabled them to deliver extreme scale and performance as a core part of their cloud infrastructure," Dekate said. But even as the stock market celebrates the deal, key details are missing and questions around power and payment remain. OpenAI has made a string of infrastructure investment announcements over the past year, each one with an eye-popping price tag. OpenAI has committed to spend around $60 billion a year for compute from Oracle and $10 billion to develop custom AI chips with Broadcom. Meanwhile, OpenAI said in June it hit $10 billion in annual recurring revenue, up from around $5.5 billion last year. That figure includes revenue from the company's consumer products, ChatGPT business products, and its API. And while its CEO Sam Altman has painted a rosy picture of its future prospects in terms of subscribers, products, and revenue, the company is burning through billions of dollars in cash each year. Power is another question, or more specifically where the companies plan to source the energy needed to run this level of compute. Industry observers have been predicting a near-term boost for natural gas, though solar and batteries are arguably better positioned to deliver power sooner and at lower cost in many markets. Tech companies are also betting big on nuclear. Despite market moving headlines, the energy impact of OpenAI's anticipated growth isn't entirely unexpected. Data centers are anticipated to consume 14% of all electricity in the U.S. by 2040, according to a report the Rhodium Group published yesterday. Compute has always been a constraint for AI companies, so much so that investors have bought thousands of Nvidia chips to ensure their startups have access to the power they need. Andreessen Horowitz has reportedly purchased over 20,000 GPUs, while Nat Friedman and Daniel Gross rented access to a 4,000 GPU cluster (though maybe Meta owns that now). But compute is worthless without power. To ensure their data centers remain juiced, large tech companies have been snapping up solar farms, buying nuclear power plants, and inking deals with geothermal startups. So far, OpenAI has been relatively quiet on that front. CEO Sam Altman has placed several prominent bets in the energy sector, including Oklo, Helion, and Exowatt, but the company itself hasn't thrown money into the space like Google, Meta, or Amazon. With a 4.5 gigawatt compute deal, that may soon change. The company may play an indirect role, paying Oracle to handle the physical infrastructure -- something it has extensive experience with -- just as Altman invested in startups aligned with OpenAI's future power needs. That will leave the company "asset light," something that will undoubtedly please its investors and help keep its valuation in line with other software-centric AI startups and not with legacy tech firms, which are burdened with pricy infrastructure.

OpenAI Needs Data Centers So Much, It Signed a $300B Deal With Oracle

Blake has over a decade of experience writing for the web, with a focus on mobile phones, where he covered the smartphone boom of the 2010s and the broader tech scene. When he's not in front of a keyboard, you'll most likely find him playing video games, watching horror flicks, or hunting down a good churro. Here's an eye-popping new price tag for generative AI's booming demand for energy and computing power for data centers: $300 billion. That's how much ChatGPT maker OpenAI has reportedly committed to spend with Oracle over a five-year span to continue its run of early success. The deal, which would be one of the largest contracts for cloud computing, was announced by both The Wall Street Journal and The New York Times on Wednesday. The contract with Oracle would entail delivery of as much as 4.5 gigawatts of power capacity, which the Journal says is roughly equivalent to two Hoover Dams or the amount used by 4 million homes. The deal would go into effect in 2027, the reports said. OpenAI didn't respond to our request for comment. Oracle declined to comment. Previously, OpenAI relied exclusively on Microsoft Azure, but has begun to diversify its cloud portfolio. In January, OpenAI announced the formation of the Stargate Project, a new company that would invest $500 billion over four years to build AI infrastructure -- that is, data centers -- with partners including Oracle, Microsoft, Nvidia and Softbank. In July, OpenAI and Oracle announced an agreement to develop 4.5 gigawatts of data center capacity for Stargate, beyond the 10 gigawatts promised in the January announcement. The Stargate facility is under construction at a sprawling site in Abilene, Texas. ChatGPT is the world's most used chatbot, amid intense competition with Google's Gemini, Anthropic's Claude and Perplexity's namesake software. The rapid growth of generative AI products and services has even led OpenAI CEO Sam Altman to worry that we're in an AI bubble.

OpenAI reportedly signs $300 billion Project Stargate cloud deal with Oracle

OpenAI, which reportedly expects $12.7 billion in revenue this year, is also likely behind another $10 billion contract with the semiconductor giant Broadcom to design its own AI chip. While reporting quarterly earnings on Tuesday, Oracle CEO Safra Catz announced that three unnamed companies had signed "four multi-billion-dollar contracts" in Q1, part of a trend that she said is increasing Oracle's cloud infrastructure revenue by 77 percent this year. Overall, the company said that in Q1 it added more than $317 billion in future contract revenue, a massive dollar amount that sent share prices soaring and Chairman Larry Ellison to the top spot of the world's richest person list.

OpenAI signs contract to buy $300 billion worth of Oracle computing power over the next five years -- company needs 4.5 gigawatts of power, enough to power four million homes

Instantly boosting Oracle CEO Larry Ellison to the world's richest man, but questions remain about how either company will afford such a deal. In one of the largest cloud contracts ever signed, OpenAI has inked a deal with Oracle to purchase $300 billion worth of computing power over the next five years, according to WSJ. That's close to 100 times OpenAI's 2024 total revenue, but follows earlier gigantic partnership commitments between the two companies, including Oracle signing on to the $500 billion Stargate data center plan, and plans for another joint data center project announced in July. The contract between the two companies will begin in 2027, but even with a multi-year lead, there will be great interest in how the two companies fund the monstrous venture. OpenAI's projected 2025 revenue wouldn't even cover half of a single year's worth of payments to Oracle as part of the plan, and Oracle itself will likely need to take on substantial debt to pay for the hardware it will eventually sell on to OpenAI. OpenAI is no stranger to operating at a loss, though, and CEO Sam Altman has even said it should be something investors expect to continue for a few more years at least. Despite being one of the premier AI companies in the world with an incredibly popular and well-known AI service in ChatGPT, OpenAI has yet to generate anything close to a profit. That creates additional risk for Oracle, too. Although it's one of the world's largest technology firms with a total market value north of $600 billion, it holds a lot of debt and has a much smaller operating cash flow than some of the largest firms investing heavily in AI and associated infrastructure, like Amazon, Meta, and Microsoft. While those companies have operating cash flow in excess of $100 billion, Oracle's is $21.5 billion. Despite some concerns over how OpenAI might fund such a monstrous investment, the markets reacted positively all the same, pushing up Oracle's stock value by over 43%. That in turn led to CEO Larry Ellison's personal net worth skyrocketing by over $100 billion in a single day, immediately making him the richest person in the world with a net worth just shy of $400 billion. This move also marks a stark change for OpenAI's computing provisions. For years, it relied exclusively on Microsoft's Azure cloud platform to power its services, but lately it's been embroiled in discussions with Microsoft about leveraging other cloud platforms for associated services. To provide OpenAI with all the computing power it needs, Oracle is set to build new data centers in a range of locations across the United States. WSJ reports that Wyoming, Pennsylvania, Texas, Michigan, and New Mexico are likely sites for new data center deployment, with Oracle relying on AI data center developer, Crusoe, to manage its expansion.

OpenAI reportedly on the hook for $300B Oracle Cloud bill

Tick tock Sam, just fifteen months before your first bill is due OpenAI will pay Oracle $300 billion over the course of five years to fuel Sam Altman's AI ambitions by providing five gigawatts of compute capacity. At least that's what unnamed sources familiar with the matter tell the Wall Street Journal, which reports that the contract is set to begin in 2027, giving the AI startup a little over a year to figure out how or perhaps who's going to be left holding the bill when it falls due. As it stands, OpenAI can't afford the checks it's writing. As of June, the AI flag bearer has annual recurring revenue of $10B. To be clear, that's revenue. The company isn't expected to turn a profit until at least 2029. Perhaps SoftBank is about to open its wallet after reportedly agreeing to chip in $19B to the OpenAI-led Stargate project that aims to build a series of giant AI Datacenters. Today's news comes just over a month after OpenAI announced that Oracle had agreed to furnish it with an additional 4.5 gigawatts of compute capacity, bringing its total compute commitment to 5 gigawatts, enough for two million additional GPUs. At the time, we estimated the cost of those GPUs at nearly $100 billion. However, that figure doesn't take into consideration the cost of the facilities and power plants necessary to support all those chips, and assumed OpenAI and friends would be paying today's prices for them. As we reported last week, OpenAI will reportedly begin fielding its own in-house silicon developed in collaboration with Broadcom, which may also factor into its cost analysis. While it remains to be seen how exactly OpenAI plans to pay its bills, it seems that Oracle's CTO and Founder Larry Ellison is already reaping the benefits of the arrangement. On Tuesday Ellison inched closer to overtaking Elon Musk as the world's richest man after the database giant turned GPU slinger's share price surged more than 30 percent in after hours trading. Driving that rally was a fat pipeline of purchase commitments that jumped 359 percent to $455 billion. CEO Safra Catz predicted sales will continue to grow over the next year. By 2031, Oracle expects its cloud infrastructure biz to crest $144 billion in annual revenues, up from $18 billion this year. The thing about purchase commitments is they're only as good as the customer who's making them. When Microsoft or Google say they're going to spend $80 billion or more a year on AI infrastructure they're probably good for it. The guy whose company is bleeding cash while boasting about spending $500 billion on AI datacenters with no obvious way to pay for them? Maybe wait for the check to clear before counting your profits. In any case, Oracle's revenue outlook suggests that either OpenAI isn't the only mega customer the aspiring cloud provider is courting or that the AI trend setter's $300 billion contract will be implemented in progressively larger phases tied to customer and revenue growth. The Register sought comment from Oracle and OpenAI; we'll let you know if they respond. ®

An AI 'house of cards': Worries of a bubble grow after Oracle's rally on Open AI deal

Skepticism is mounting about the viability of Oracle's multiyear deal with OpenAI, a company that has yet to report a profit. Oracle's stunning results on Tuesday inspired confidence from the market about the longer term viability of AI demand. Oracle shares ripped 36% higher on Wednesday for its best day since 1992 . But doubts are growing about the growth forecast given its customer concentration and its high leverage. Oracle said it has $455 billion in remaining performance obligations, or RPO, up 359% from a year earlier. However, the bulk of this tally is tied to just one customer: OpenAI . In other words, the market is betting on OpenAI's ability to follow through on its commitment. CNBC confirmed a Wall Street Journal report that the AI company agreed to buy $300 billion in computing power over the next five years from Oracle beginning in 2027. OpenAI has already committed more than $100 billion to other AI and neocloud projects while having about $12 billion in annual recurring revenue. According to D.A. Davidson managing director Gil Luria, OpenAI would need more than $300 billion in revenue to "justify that level of spend." Luria is one of the handful of analysts on Wall Street that remain neutral-rated on Oracle shares after its quarterly report. "Our enthusiasm for Oracle's backlog announcements is significantly tempered by the report that it came almost entirely from OpenAI," Luria said. He noted that OpenAI's nonprofit status is limiting its ability to take in the $40 billion it raised in March, although he expects this issue to be resolved by next year given Microsoft's stake in the company. Luria's $300 price target suggests that Oracle stock -- which is up 75% for the year -- could gain less than 3% from Friday's close. Shares slid 5% on Friday as investors raked in profits after this week's more than 25% pop. Murky details JPMorgan analyst Mark Murphy similarly remains neutral-rated on Oracle. He said the risk-reward looks balanced after its gains this week. He lifted his year-end price target by $60 to $270, but that implies shares could slide more than 7%. Murphy likes that more than 70% of Oracle's total revenue is recurring. Also, he expects the company could benefit from a broader market rotation into value as it is a "relative safe haven" in the software sector. However, the murky profiles of Oracle's contracts remains top-of-mind for the analyst. "Oracle is also closing business outside of OpenAI, including at least 2 other contracts that are worth 'multi-billions', and yet we are in the dark as to whether the multi-billions add up to $4B out of the $455B RPO balance, or $10B, $50B, $100B, etc. -- a huge swing factor when trying to assess customer concentration risk and likelihood of customers being able to fund $455B worth of future payments -- plenty of tech companies carry net debt, and/or minimal cash, and/or will be burning cash for the next several years -- that list is not limited to Oracle itself," Murphy wrote Wednesday in a note to clients. "Short-term trading responses tend to be headline-driven and controlled by the instinctual mind, while deeper thinking takes longer to settle in, in some cases requiring quarters or years," the analyst added. Although Oracle's stock gains took the company to the tenth-largest spot in the S & P 500 , its cash holdings paint a different picture than its peers. The company had $11.2 billion in cash and short-term investments at the end of its May 31 quarter, which is significantly less than the "Magnificent Seven" cohort. Microsoft and Google parent Alphabet , for example, have a cash moat of about $95 billion each. To be sure, Oracle reported a free cash flow of $5.8 billion for its fiscal year 2025, which marked a big jump from the previous year's $394 million. ORCL 1Y mountain Oracle stock performance over the past year. Talks of an AI bubble Oracle's huge stock move this week could mark signs of a peak AI bubble, according to Gary Marcus, a New York University professor and Geometric Intelligence founder. OpenAI is more vulnerable than many people realize, said Marcus. The AI researcher cited the disappointing reception for its Chat GPT-5 release and its lack of a technical advantage to back up his claim. "There's many reasons to wonder whether OpenAI is really going to be able to pull this off. ... There's lots of ways in which things could go wrong for them -- having one customer that you have this agreement with that may not even be able to pay the bills, and, of course, Oracle has its own financial issues and doesn't actually have the chips," Marcus said in an interview. "It all just seems very speculative to me. ... I would be astonished if they really did collect all of the $300 billion." On social media, some have flagged the dangers of an interconnected AI ecosystem, which relies on close partnerships between AI model makers, hardware suppliers for GPUs and infrastructure and software makers. "How is this all going to work exactly? ORCL has to buy the chips, take on more debt, while OpenAI has $10B in revenue but will spend $60B/yr in CapEx for five years," said Ophir Gottlieb, chief executive of boutique market research firm Capital Market Laboratories, in an X post . Lazard portfolio manager Shanu Mathew similarly questioned the Oracle-OpenAI deal in an X post , writing that "so much of AI feels levered to whether OpenAI can eventually generate meaningful revenues and keep financing massive amounts of infrastructure ... separately, even on the token usage side (inference), AI continues to be AI's biggest customer -- agents, vibe coding, etc. It feels a little house of cards-y." -- CNBC's MacKenzie Sigalos contributed to this report.

OpenAI projects sales of $100 billion by 2028, but Sam Altman says profits won't come until 2029

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Editor's take: With billions in losses expected for years and obligations stretching deep into the next decade, OpenAI's projections hinge on whether companies and consumers dramatically increase their willingness to pay for AI. In a market still hunting profitable use cases, the company has little choice but to bet that demand will eventually catch up to its ambitions. OpenAI has embarked on one of the most ambitious - and costly - expansion strategies in Silicon Valley, spending tens of billions annually while posting steep losses. The Wall Street Journal reports that in less than three years since launching ChatGPT, the startup has staked its future on the bet that global demand for AI will surge fast enough to justify its swelling commitments. Over the past nine months, OpenAI has struck contracts and investments that dwarf those of most tech startups. The company has committed roughly $60 billion annually for computing from Oracle, invested $18 billion in a joint data center venture, and spent $10 billion on custom semiconductors. It is also developing a hardware device aimed at mass-market use. These deals have locked OpenAI into commitments totaling hundreds of billions over the next decade and reshaped the valuations of some partners. In just the past week, the agreements added over $400 billion in market value to Broadcom and Oracle, making Larry Ellison the wealthiest man in the world in the process. Despite these extraordinary expenditures, OpenAI continues to lose billions annually. The company told investors it expects $13 billion in revenue this year, a person familiar with the matter told The Wall Street Journal, but internal projections indicate losses will persist for years. Last fall, CEO Sam Altman told investors that OpenAI would lose $44 billion through 2029, the year he forecasts the startup will finally turn a profit. Altman, who has likened the current wave of AI investment to the dot-com era, also warned that "some AI startups and investors will get burned," though he told The Wall Street Journal he does not expect OpenAI to be among them. The company expects its revenue to more than triple this year, and the company has told investors it could reach $100 billion in sales by 2028 and $200 billion by 2030. OpenAI's expansion depends heavily on securing funding. Over the past year, Silicon Valley's most prominent investors have poured roughly $50 billion into the company. Microsoft, already one of OpenAI's most influential financial backers, renewed its partnership in a deal announced this week that will help the company restructure into a for-profit entity - a step necessary to unlock about $19 billion in committed funding. Beneath the optimism lies a critical question: how to convert AI's rapid adoption into lasting profitability. OpenAI now counts over 700 million ChatGPT users - the fastest-growing consumer application in history - but most are not paying customers. According to a survey by Menlo Ventures, only about 3 percent of consumers currently pay for AI services, spending roughly $12 billion in total. The study found that while people experiment with AI for many tasks, consistent willingness to pay remains limited. Concerns extend to the corporate sector. A June McKinsey report found that eight in ten companies using AI had seen no substantial profit gains. MIT research reached similar conclusions, suggesting that business adoption may take longer and prove more complex than investors anticipate. The broader economic picture is equally unsettled. In March, Microsoft CEO Satya Nadella framed AI's success in terms of boosting global GDP growth to 10 percent annually, comparable to the industrial revolution. Wharton School projections are far more modest, estimating AI might raise productivity and GDP by just 1.5 percent by 2035. Even some champions of the technology acknowledge that many players will fail. Dave Blundin, founder of venture capital firm Link Ventures, called AI "the most transformative thing in human history," but warned that the financial shakeout would leave many companies and their investors losing money. OpenAI's leadership and investors appear undeterred by the risks. Altman has raised more capital than any startup founder before him, fueled by confidence that the company's growth trajectory will continue. Advocates remain equally unshakable in their belief that AI is still in its early stages and that the long-term upside far outweighs today's obstacles.

OpenAI's spending spree is powering the tech industry. Oracle is the latest winner

OpenAI CEO Sam Altman speaks to members of the media as he arrives at a lodge for the Allen & Co. Sun Valley Conference on July 8, 2025 in Sun Valley, Idaho. Oracle's historic stock surge this week marked the latest chapter in the story of a single private company that's dominated the tech landscape for almost three years: OpenAI. In Oracle's blowout earnings report, OpenAI was a key catalyst due to a massive amount of money the artificial intelligence startup expects to spend on cloud computing technology in the coming years. It's becoming a familiar theme. A week earlier, Broadcom shares popped almost 10% after the chipmaker and software vendor said it forged a $10 billion deal to build custom processors for a customer that analysts said was OpenAI. Among tech's megacaps, Microsoft has the closest link to OpenAI, having invested more than $13 billion in the company and serving as its key cloud partner for six years. Nvidia's march to becoming the world's most valuable company is intimately tied to OpenAI, as its graphics processing units (GPUs) sit at the heart of large language model development and are essential for running big AI workloads. Those four companies alone -- Oracle, Broadcom, Microsoft and Nvidia -- have seen their combined market caps swell by over $4.5 trillion since OpenAI burst into public view with the launch of ChatGPT in late 2022. And those gains are a big reason why the Nasdaq and S&P 500 have sustained sharp rallies, with both benchmarks closing at a record on Friday. OpenAI's outsized influence has some market experts understandably concerned. It remains a cash-burning startup that's governed by a nonprofit parent.

OpenAI turns to Oracle in historic $300 billion cloud partnership

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. OpenAI has struck a landmark deal with Oracle to buy $300 billion in computing power over five years, highlighting both the explosive rise of AI and the growing financial risks around it. People familiar with the matter told The Wall Street Journal that the contract - one of the largest cloud deals ever signed - will take effect in 2027. The contract dwarfs OpenAI's current annual revenue of about $10 billion, committing the startup to an average of $60 billion per year for cloud services. The scale of the deal highlights the company's financial strain. OpenAI told investors last year it doesn't expect to turn a profit until 2029 and could rack up as much as $44 billion in losses before then. The deal also underscores the enormous energy demands of training and deploying AI systems. Oracle's work with OpenAI will require 4.5 gigawatts of electricity capacity - roughly the output of two Hoover Dams, or enough to power four million homes. Oracle CEO Safra Catz told analysts the company's cloud pipeline reflects unprecedented demand. In a filing earlier this summer, Oracle hinted at the OpenAI contract by disclosing a cloud services deal expected to generate more than $30 billion in annual revenue starting in 2027. The contract comes as OpenAI struggles with a persistent shortage of computing capacity, slowing new product rollouts and delaying next-generation AI models. The challenge extends across the industry, with tech firms racing to build data centers and secure advanced chips. OpenAI has pursued several initiatives to expand its computing capacity. It struck a deal with Broadcom to develop custom chips and partnered with SoftBank on a major venture called Stargate, its umbrella for data center expansion. Stargate stumbled early, and OpenAI now considers the Oracle partnership part of that broader effort. For years, OpenAI relied exclusively on Microsoft for computing power. With capacity constraints mounting, the company recently sought approval to bring in other cloud providers. The Oracle agreement marks a landmark shift, representing one of the largest bets on OpenAI's growth beyond its ties to Microsoft. The deal carries significant risks for both sides. OpenAI faces a massive cost burden - many times its current revenue - betting its future on continued explosive growth of ChatGPT and adoption by consumers, businesses, and governments worldwide. At the same time, the startup confronts other pressures, including intense competition for talent, ongoing regulatory scrutiny, and sensitive negotiations with Microsoft over the future of their partnership. For Oracle, the risk lies in concentrating a large share of future revenue on a single client while already carrying heavy leverage. Its debt-to-equity ratio stands at 427 percent, far above Microsoft's 32.7 percent, according to S&P Global Market Intelligence. Last fiscal year, Oracle generated $21.5 billion in operating cash flow against $27.4 billion in capital expenditures. By contrast, Microsoft produced $136 billion in operating cash flow with $88 billion in capital spending, leaving it far better positioned to handle the massive costs of building AI infrastructure - and highlighting just how big a gamble Oracle is taking.

OpenAI commits $300 billion to Oracle in massive five-year deal to fuel artificial intelligence

Deal raises risks as OpenAI loses money and Oracle takes on heavy debt OpenAI has signed a contract with Oracle to buy $300 billion worth of computing power over the next five years, according to the Wall Street Journal. This makes it one of the largest cloud deals ever struck. The contract will begin in 2027 and is expected to reshape how OpenAI builds and runs its artificial intelligence models. The agreement will require 4.5 gigawatts of power capacity, which is enough electricity to supply about four million homes. It shows how the rush to build AI data centers is driving new highs in technology spending even as questions remain over whether demand will justify such commitments. Oracle disclosed in its latest earnings report that it added $317 billion in future contract revenue during the quarter ending August 31, partly due to the OpenAI deal. The news sent Oracle shares soaring by more than 40 percent in a single day. That surge increased Oracle Chairman Larry Ellison's wealth by more than $100 billion, and saw him overtake Elon Musk as the world's richest person with a net worth close to $400 billion. The deal is not without massive risk for both parties, however. For OpenAI, the agreement provides a new source of computing power after years of relying exclusively on Microsoft's Azure cloud, but WSJ says the company, which reported about $10 billion in revenue this year, will owe Oracle an average of $60 billion annually under the agreement. The startup is losing money and has told investors it does not expect to turn a profit until 2029. Oracle, meanwhile, will have to borrow heavily to finance the AI chips and infrastructure needed to deliver the contract. Plus, as WSJ reported, "The deal rests on the assumption ChatGPT will continue its explosive growth and be adopted by billions of people across the world, as well as major businesses and governments." Industry analysts say the partnership underlines both the promise and the strain of the AI boom. Spending on chips, servers, and data centers worldwide is projected to reach $2.9 trillion by 2028. Whether OpenAI's growth can keep pace with its commitments remains an open question.

Why OpenAI's $300 billion deal with Oracle has set the 'AI bubble' alarm bells ringing | Fortune

Last week, Oracle surprised Wall Street with a massive $300 billion deal with OpenAI, a five-year deal that helped send Oracle's stock soaring -- and brought simmering fears of an 'AI bubble' back to the surface. Oracle shocked analysts in its latest quarterly earnings call with revenue projections that cited $455 billion in contracts, up 359% from a year earlier. The optimistic forward-looking numbers caused the company's stock to jump 36% on Wednesday, the company's biggest one-day increase ever, and briefly made CEO Larry Ellison the richest man in the world. Part of the reason Oracle was able to strike the deal with OpenAI at all is due to Ellison's courting of Nvidia CEO Jensen Huang, which has allowed his company, despite previously trailing behind other cloud providers, to secure a large stockpile of top-of-the-line Nvidia GPUs and position itself as a significant player in the AI infrastructure space. The rally added to the 45% gain the company already notched up this year, and cemented Oracle's AI-fueled comeback. But while securing top-tier GPUs has bolstered Oracle's infrastructure position, some analysts were quick to warn that the financial risk was heavily concentrated in a single, unproven customer. According to a Wall Street Journal report, the bulk of the company's $455 billion remaining performance obligations, or RPO, will come from the $300 billion deal OpenAI. The AI firm announced it will tap Oracle's computing infrastructure under the multi billion deal, one of the largest cloud contracts ever signed. It also far exceeds OpenAI's current revenue, which recently hit $12 billion in annualized revenue, per The Information. Because remaining performance obligations represent contracted but not yet delivered services, they are not guaranteed revenue; customers can delay, renegotiate, or even cancel portions of these commitments. Fears that the AI sector might be in a bubble have intensified recently due to a combination of sky-high valuations, early signs of disappointing returns, and cautionary remarks from industry leaders. A recent study from MIT that found 95% of AI pilot programs fail to deliver meaningful returns, despite over $40 billion having been invested in generative AI projects, fueled fears that a gap was emerging between investment hype and real-world results. Days before the report was released, OpenAI CEO Sam Altman also said that he believed the AI sector might be experiencing a bubble in the private markets, expressing concern over the level of investor enthusiasm and the overvaluation of some startups. Gary Marcus, an AI expert who has been warning of a potential bubble and problematic economics of AI since 2023, called the OpenAI-Oracle deal "peak bubble." "Oracle's new market cap, near a trillion dollars, up nearly 50% this week, driven largely by this one apparently non-binding deal with a party that doesn't have the money to pay for the services, seems more bonkers than most," Marcus wrote in a Substack post. He wasn't the only one raising alarms about the deal's credibility. "This is a grotesque attempt by both Oracle and OpenAI to mislead investors and the markets at large with a contract that neither party can fulfill, and it virtually guarantees that OpenAI will run out of cash in the next few years," Ed Zirtron, a technology writer and founder and CEO of EZPR who has also emerged as a vocal skeptic of the hype surrounding AI, said in a blog post. "OpenAI, while claiming it'll make more revenue than NVIDIA by 2030, needs $250bn funding over the next four years to pay its $300bn compute contract with Oracle, who cannot physically build the data centers to service it in time." And it wasn't just those who doubt the underlying potential of today's AI models that questioned the economics of the deal. "I'm not an AI bubble person, but it is very understandable for investors to be confused/concerned by the OpenAI-Oracle deal lol. OpenAI hasn't even gotten the for-profit conversion approved and is promising people 300 billion dollars??" Miles Brundage, an AI researcher and former head of policy research at OpenAI, added in a post on X. Investors also had questions. "How is this all going to work exactly? ORCL has to buy the chips, take on more debt, while OpenAI has $10B in revenue but will spend $60B/yr in CapEx for five years. What?" Ophir Gottlieb, CEO of Capital Market Laboratories, wrote on X . OpenAI has made several other billion-dollar deals recently, including $10 billion to develop custom AI chips with Broadcom. The company is also still in the process of figuring out how exactly it's going to restructure its corporate governance to allow its for-profit to raise more capital, although it's made a significant step recently by getting lead investor Microsoft on board. Taken together, OpenAI's current revenue and capital commitments fall far short of what would be needed to fully fund the Oracle contract, with analysts estimating the company would need hundreds of billions in annual revenue to meet these obligations. Representatives for OpenAI and Oracle did not immediately respond to a request for comment from Fortune.

Reports: OpenAI to spend $300bn for Oracle's compute power

Last week, it was reported that OpenAI is paying Broadcom $10bn to make custom AI chips. OpenAI has reportedly signed a $300bn contract with Oracle to purchase the company's computing power over a five year period. The deal was first reported by the Wall Street Journal and later sources said the same to The New York Times. The two companies are yet to confirm the news. This comes after Broadcom said it received a $10bn order for custom AI chips last week. The client, according to a Financial Times report, was confirmed to be OpenAI. Earlier this July, OpenAI said that it struck a 4.5 gigawatt deal with Oracle, but did not disclose the size of the contract. OpenAI's reported deal with Oracle is one of the largest cloud contracts ever signed, reflecting the gargantuan power AI technology needs while highlighting how AI spending is hitting record highs. Reports say that the contract will commence in 2027. The ChatGPT-maker said in June that it was generating around $10bn in annual revenue. However, the company expects to spend $60bn on average every year. Last year, the money-leaking start-up's CEO Sam Altman said that OpenAI will not generate profit until 2029 and expects to lose around $44bn until it does so. Still, there is immense backing behind OpenAI, which announced a $40bn raise earlier this year, taking the company's valuation to $300bn. And although the raise came just half a year after a funding round marked the company's value to $157bn, recent reports suggest that it's on its way to reach a $500bn valuation after preparing to sell around $6bn in stocks. Altman has an expensive vision, who said earlier this month that his company "will cross well over 1m GPUs brought online by the end of this year". The company's $500bn Stargate venture (which is also backed by Oracle) will see private investment flow into the company's AI infrastructure over the next four years. Bloomberg reported that the company is planning on building a massive new data centre in India, in what could be a "major step forward" for the Stargate project's push in Asia. Altman said that he is planning on investing "much more in India". Meanwhile, Oracle's shares surged by more than 40pc yesterday (10 September) after the company revealed $317bn in future contract revenue during its recent quarterly earnings. Oracle's increased share price led to chairperson and chief technology officer Larry Ellison's wealth surging by more than $100bn, briefly making him the World's richest man, worth more than Elon Musk, who has a net worth of more than $435bn. Broadcom also saw its stock prices going up by 5pc after it revealed its new $10bn client. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news. Larry Ellison, Oracle CTO. Image: Oracle PR/ Flickr (CC BY 2.0)

Oracle Lands $300 Billion OpenAI Cloud Deal, One of the Largest in History

The agreement will see Oracle supply OpenAI with roughly 4.5 gigawatts of computing capacity. OpenAI has struck one of the largest cloud computing deals in history with Oracle, agreeing to a contract worth about $300 billion over five years starting in 2027. According to the Wall Street Journal, the agreement will see Oracle supply OpenAI with roughly 4.5 gigawatts of computing capacity, an amount of power comparable to two Hoover Dams or enough to run around four million homes. The scale of the deal is staggering compared to OpenAI's current business. The AI company generates around $10 billion in annual revenue, making the long-term commitment a major financial bet on the future of its technology. For Oracle, the agreement represents a transformative moment. Shares of the company surged by nearly 43% following the announcement, the biggest single-day

OpenAI and Oracle strike $300B cloud computing deal to power AI - SiliconANGLE

OpenAI today confirmed that it has signed an agreement that will see it purchase computing infrastructure worth $300 billion from Oracle Corp. over a period of roughly five years, as part of its previously announced Project Stargate data center building initiative. The deal represents one of the biggest ever cloud contracts in history, and is a massive commitment that far outstrips OpenAI's current revenue, reflecting the frenzied rate of spending on artificial intelligence data centers by Silicon Valley companies. OpenAI and Oracle will construct 4.5 gigawatts of data center compute capacity, which is roughly equivalent to the electricity produced by more than two Hoover Dams, or the amount consumed by around four million U.S. homes, the Wall Street Journal reported today. The announcement came after Oracle's stock surged by more than 42% on Wednesday after it reported adding $317 billion in future contract revenue during its latest quarter. Oracle Chief Executive Safra Catz told analysts on a conference call that her company had signed contracts with three customers, one of which we now know was OpenAI. The first hint of the deal came in June, when Oracle said in a regulatory filing it had agreed a cloud services agreement that would generate more than $30 billion in revenue in fiscal 2027. The revenue it receives will increase with each year, as more data center infrastructure comes online. OpenAI revealed one month later that it had agreed to purchase 4.5 gigawatts of compute power from Oracle, but did not disclose the size of the contract at that time. Project Stargate was first announced at the White House in January, when OpenAI CEO Sam Altman and Oracle founder and Chief Technology Officer Larry Ellison (pictured) appeared alongside U.S. President Donald Trump, who said it was all about establishing American leadership in AI. The two partners initially pledged to build at least $100 billion worth of data centers, before expanding the effort to $500 billion in the "coming years". OpenAI later confirmed that Stargate is the brand for all of its data center infrastructure initiatives, but has not revealed the specifics of that pact, which also involves the technology investor SoftBank Group Corp. After announcing Stargate, OpenAI has already secured commitment for more than half of $500 billion goal, and construction is already underway at a location in Abilene, Texas. OpenAI and Oracle aren't the only big tech firms racing to build out AI data center facilities as fast as they can. Rivals including Amazon Web Services Inc., Microsoft Corp., Google LLC and Meta Platforms Inc. have pledged to spend a combined $300 billion on building their own giant data centers this year. But OpenAI's and Oracle's venture may be perceived by some as somewhat more risky. OpenAI is very far from being profitable. On on the contrary, it's bleeding cash. In June it disclosed that it's generating approximately $10 billion in annual revenue, which is less than a fifth of the $60 billion in expenses it will pay each year on building out data centers and renting compute capacity from other data center operators. Meanwhile, Oracle is betting a large chunk of its future revenue on just one customer, and will probably have to take on debt to fund the purchase of the AI chips needed in its planned data centers. Altman has already committed to a number of seemingly risky ventures. His company is also said to be working with Broadcom Inc to develop its own custom AI chips, and reportedly trying to build a device that will compete with Apple Inc.'s iPhone. The company, which has taken billions of dollars in funding, is burning through more money than pretty much any startup in history. Last year, Altman reportedly told investors he doesn't expect OpenAI to become profitable until 2029 at the earliest, and will likely need to spend $44 billion to get there. As such, OpenAI and Oracle's deal is a gamble that ChatGPT's explosive growth will continue to accelerate and end up being used by billions of consumers and thousands of businesses globally. But it faces some serious competition from rivals such as Google and other AI startups like Anthropic PBC and has an increasingly tense relationship with its main financial backer Microsoft. The Journal says that Oracle has a much greater debt load relative to its cash holdings compared to Microsoft, Amazon and Meta. Its investments on AI infrastructure have already outpaced its cash flow, and it has a total debt to equity ratio of 427%, compared to just 32% for Microsoft. OpenAI and Oracle have also committed to a separate initiative that will see them build a massive data center complex in the United Arab Emirates, as part of a deal that was negotiated by Trump and that country's government. It's a joint venture that also involves SoftBank and the Emirati investment firm G42 and other stakeholders. However, G42 will contribute to the financing of OpenAI's U.S. data centers too, with the deal being that for every dollar it invests in the Emirates, it will spend an equivalent amount on U.S. data centers.

OpenAI's $300 billion Oracle deal sparks AI bubble fears, experts sound alarm - key reasons

AI bubble fears: Last week, Oracle stunned Wall Street by announcing a massive five-year, $300 billion deal with OpenAI. The announcement sent Oracle's stock soaring, up 36% in a single day, its biggest jump ever, and briefly made CEO Larry Ellison the richest person in the world, as per a report. But while investors celebrated, experts quickly raised concerns that this huge deal may be fueling an unsustainable AI bubble. Oracle projected a massive $455 billion in contracts over the next five years, a 359% jump from last year. The deal with OpenAI is at the heart of this optimism, and Oracle's recent success partly comes from its strong relationship with Nvidia, as per Fortune. That is because of CEO Larry Ellison's partnership with Nvidia's Jensen Huang, Oracle secured a large supply of top-tier Nvidia GPUs, crucial hardware for AI computing, according to the report. This helped Oracle position itself as a rising star in AI infrastructure, despite previously trailing cloud giants. ALSO READ: US government heading for shutdown? 5 key points all Americans must know Most of Oracle's huge $455 billion in "remaining performance obligations" (RPO), meaning contracted but not yet delivered services, come from this one client: OpenAI, as per the Fortune report. OpenAI's current annual revenue is only around $12 billion, far smaller than the value of the Oracle deal. Since RPOs aren't guaranteed income (customers can delay or cancel), the financial risk is heavily concentrated in a single, still-growing company. Concerns about an AI bubble have been growing, fueled by soaring valuations and disappointing early returns on investments. A recent MIT study found that 95% of AI pilot projects fail to deliver meaningful results, despite more than $40 billion poured into generative AI so far. Even OpenAI CEO Sam Altman recently admitted there might be a bubble in the private AI market, warning investors to be cautious. An AI expert, Gary Marcus, who has been warning of a potential bubble of AI since 2023, called the OpenAI-Oracle deal "peak bubble", as reported by Fortune. He explained that, "Oracle's new market cap, near a trillion dollars, up nearly 50% this week, driven largely by this one apparently non-binding deal with a party that doesn't have the money to pay for the services, seems more bonkers than most," as quoted in the report. ALSO READ: Trump sparks outrage: Says he would consider banning LGBTQ+ Pride flags in shocking Oval Office moment A technology writer and founder and CEO of EZPR, Ed Zirtron pointed out that, "This is a grotesque attempt by both Oracle and OpenAI to mislead investors and the markets at large with a contract that neither party can fulfill, and it virtually guarantees that OpenAI will run out of cash in the next few years," as quoted by Fortune. CEO of Capital Market Laboratories, Ophir Gottlieb questioned, "How is this all going to work exactly? ORCL has to buy the chips, take on more debt, while OpenAI has $10B in revenue but will spend $60B/yr in CapEx for five years. What?" as quoted in the report. Is this deal guaranteed money for Oracle? No, customers like OpenAI can delay, renegotiate, or cancel contracts. What's the concern about an AI bubble? Many believe AI investments are overhyped and won't deliver promised returns, creating a financial bubble.

OpenAI's Unprecedented Cash Burn Poses Massive Challenge To $300 Billion Oracle Deal - Netflix (NASDAQ:NFLX), Oracle (NYSE:ORCL)

The future of OpenAI has been thrown into uncertainty as the company reportedly lacks the funds to honor its $300 billion deal with Oracle Corporation ORCL. OpenAI Faces Funding Shortfall Amid $300 Billion Oracle Deal OpenAI, a major player in the AI industry, is facing a significant financial hurdle. The company, which has been aggressively expanding its operations, is unable to meet its financial obligations, Sherwood reported. The deal with Oracle, which is valued at $300 billion over five years starting in 2027, has brought OpenAI's financial situation into sharp focus. The company is currently unable to cover this amount, despite its efforts to secure funding from private markets. OpenAI's financial struggles are particularly noteworthy given the current state of the stock market. According to Sherwood, when combining the cash burn of four major tech companies during their peak cash-burning periods, including Uber Technologies Inc. UBER, Tesla Inc. TSLA, Snap Inc. SNAP, and Netflix Inc. NFLX, the total is a mere $42 billion. This amount, which would have been remarkable to raise in the public markets a few years ago, is insufficient to cover OpenAI's peak cash burn for a single year. David Crowther from Sherwood states that the ChatGPT-maker is projected to spend $115 billion by 2029. "No company in history has ever lit that much money on fire intentionally, let alone tried funding such a splurge through private markets alone." Analysts Divided Over The Viability Of Oracle-OpenAI Deal The news of OpenAI's financial difficulties comes on the heels of a historic rally in Oracle's stock price, driven by the company's massive cloud commitments tied to OpenAI. This development underscores OpenAI's significant influence across technology markets and raises questions about the potential impact of OpenAI's financial struggles on Oracle's future. Despite these challenges, some industry experts believe that OpenAI's $300 billion deal with Oracle highlights the company's early position in the AI race. This perspective suggests that OpenAI may still be able to attract investors in the private markets, despite the cooling of AI adoption. However, not everyone is optimistic about Oracle's future. Famed short-seller Jim Chanos has publicly questioned the quality of Oracle's massive new backlog, arguing that the cornerstone $300 billion deal with OpenAI is risky, years away from starting, and reminiscent of the company's past accounting controversies. According to Benzinga Edge Stock Rankings, Oracle has a growth score of 66.07% and a momentum rating of 94.03%. Click here to see how it compares to other leading tech companies. READ NEXT: Oracle 'Will Reshape Industries And Change The World': Gene Munster On What OpenAI Deal Means Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NFLXNetflix Inc$1200.26-0.17%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum86.80Growth84.68Quality81.86Value10.27Price TrendShortMediumLongOverviewORCLOracle Corp$311.973.25%SNAPSnap Inc$7.490.40%TSLATesla Inc$419.672.35%UBERUber Technologies Inc$99.380.54%Market News and Data brought to you by Benzinga APIs

OpenAI Strikes $300 Billion Project Stargate Deal With Oracle To Build Next-Generation AI And Cloud Infrastructure

OpenAI has been arduous in its efforts to establish itself in artificial intelligence and expand its products and services. Its efforts can be seen in its attempts to create its own search engine and then stepping into filmmaking to extend into varied domains. The tech giant has no intention of slowing down and is said to have now entered a massive agreement with Oracle of $300 billion over five years, starting in 2027. OpenAI has signed a $300 billion deal with Oracle in an attempt to secure the massive computing power and infrastructure it would need in the coming years. This deal is said to be part of Project Stargate, which is a massive initiative focused on creating the next generation of data infrastructure that will help support artificial intelligence at a much larger scale. According to the Wall Street Journal report, the partnership would allow OpenAI access to Oracle's expansive cloud infrastructure, which has established its position in both the market space and the technological capabilities front. The company has been able to mark itself as a serious competitor when it comes to the AI race and has been able to leverage its data center network in order to compete with big giants in the market, such as Microsoft Azure. With the deal proceeding, Oracle would be able to establish itself further as a major player in the growing AI industry. The sheer size of the deal signed baffles, given that such an amount is generally tied to government programs and not cloud service agreements. It could be that the stated value does not represent the exact cost but rather the potential spending that could be involved. Regardless, it does raise eyebrows in terms of how costly it is to develop and operate advanced AI. Since projects like these involve massive computing power, energy, and infrastructure to train models and deliver access globally, it does require a hefty amount. The deal goes beyond a mere agreement, as it represents how AI is shaping up to be a long-term and capital-intensive endeavor and has the potential to entirely reshape technology, especially given how they plan to escalate their efforts beginning in 2027. OpenAI has been highlighting its focus on planning for the future of AI and how it is completely focused on growing and leading when it comes to the technology.

Oracle and OpenAI Strike $300 Billion Cloud Agreement for AI Infrastructure  | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. According to The Wall Street Journal, the five-year deal secures vast amounts of computing power and requires 4.5 gigawatts of electricity, roughly equal to what 4 million U.S. homes consume. The size of the contract reflects how artificial intelligence (AI) is shifting into a new stage. The industry is no longer centered only on model releases or consumer apps, but on long-term commitments to the infrastructure needed to support them. One way to read this agreement is as a move to secure access ahead of shortages. Demand for advanced chips and data-center space continues to exceed supply. By locking in capacity, OpenAI is ensuring it can serve customers without interruption. The strategy is similar to how energy firms or governments arrange long-term supply contracts; stability is worth paying for. For Oracle, the deal strengthens its standing in a competitive cloud market. By tying itself to one of the most visible AI providers, the company is positioning itself as a central player in a fast-growing segment. The economics of AI are unusual. Unlike many internet businesses that could scale for years with relatively low overhead, AI requires heavy spending on hardware, electricity and technical expertise. PYMNTS has reported that the balance of spending is already shifting from training models to running them in real time, a process known as inference. That shift means expenses do not ease after development is complete. Instead, costs stay high as models are used billions of times a day in payments, fraud checks, customer service and other functions. The Oracle-OpenAI deal will reach far beyond cloud computing. New data-center campuses are planned in Wyoming, Pennsylvania, Texas, Michigan and New Mexico. These projects will require electricity from local utilities and construction from regional firms. Semiconductor demand will rise as well. Oracle is planning tens of billions in chip purchases for its Stargate project. Such orders provide long-term visibility for chipmakers and encourage further investment in production capacity. Financing is another piece of the puzzle. PYMNTS noted that private credit and project finance are becoming more important as traditional lenders weigh the risks of such large-scale commitments. Long-term contracts like this one make it easier for banks and investors to fund related projects with predictable revenue streams. At first glance, $300 billion may seem extraordinary. But history shows that what looks outsized in one period often becomes ordinary in the next. In telecom, billion-dollar spectrum auctions were once rare; today, they are expected. In the early internet era, investments in fiber-optic networks seemed excessive, but they became the foundation for decades of growth. While Oracle and OpenAI are drawing attention with the scale of their deal, rivals are pursuing their own approaches to secure a foothold in the next phase of AI infrastructure. Microsoft has long been OpenAI's primary partner, providing both cloud capacity and capital through Azure. Amazon and Google are investing heavily to expand their data-center networks, each highlighting proprietary chips designed to improve efficiency and lower costs. OpenAI itself has recently diversified, tapping Google Cloud for additional computing capacity beyond Microsoft and now Oracle. The contest to dominate AI infrastructure remains unsettled and is intensifying across the sector. For Oracle, the contract brings a steady revenue stream and helps it compete with larger rivals. For OpenAI, it ensures that as demand grows, compute will not be a limiting factor. For the broader market, it signals that AI is entering an infrastructure phase, where capacity planning, energy supply and financing matter as much as algorithms and model performance.

oracle: OpenAI signs $300 billion data center pact with tech giant Oracle - The Economic Times

OpenAI has signed a deal with tech giant Oracle to build $300 billion in computer infrastructure that will be used to develop artificial intelligence technologies and deliver them to businesses and consumers, two people familiar with the agreement said. The two companies have agreed to spend $300 billion on the construction of data centers over roughly five years, said the people, who spoke on the condition of anonymity because they were not authorized to discuss the deal. In July, Oracle laid out part of the agreement in a regulatory filing, but it did not reveal many details. The deal was previously reported by The Wall Street Journal. Oracle's stock price climbed more than 40% on Wednesday after the company revealed that it had added more than $317 billion in future contract revenue during its latest financial quarter. Project Stargate is part of a wider effort to build AI data centers around the world. OpenAI, Amazon, Google, Meta and Microsoft plan to spend more than $300 billion combined on giant data centers by the end of this year. In January, OpenAI, Oracle and Japanese conglomerate SoftBank joined President Donald Trump in announcing that they would create at least $100 billion in computing infrastructure in the United States as part of Project Stargate. They also said they planned to expand the effort to $500 billion in the coming years. After signing its deal with Oracle, OpenAI has secured commitments for more than half of that goal. Construction is already underway on data centers in Abilene, Texas, and the companies plan to build in other locations as well. Separately, OpenAI plans to build a massive computing complex in the United Arab Emirates, following a deal between the Trump administration and the Persian Gulf nation. This facility is part of a venture with Oracle, SoftBank, UAE artificial intelligence firm G42 and others. G42 will also contribute money to the construction of OpenAI data centers in the United States, OpenAI has said. For every dollar that G42 and its partners invest in the UAE, they will invest an equivalent amount in the U.S. facilities. The size of the planned data center in the Middle East suggests that G42 will invest tens of billions of dollars in each country. (The New York Times has sued OpenAI and its partner, Microsoft, claiming copyright infringement of news content related to AI systems. OpenAI and Microsoft have denied those claims.)