Oracle has announced a groundbreaking cloud services contract expected to generate more than $30 billion in annual revenue starting in its fiscal year 2028. The identity of the major client remains undisclosed, arousing significant speculation within the tech industry.
This single agreement alone is projected to more than double Oracle’s current cloud revenue, which stood at $24.4 billion in fiscal year 2025. The company’s shares surged following the revelation, signaling strong investor confidence in its burgeoning cloud and artificial intelligence (AI) initiatives.
While Oracle has remained tight-lipped about the customer, industry analysts are pointing towards OpenAI as the most likely candidate. This speculation is largely driven by OpenAI’s existing collaboration with Oracle on “Project Stargate,” a massive initiative to build a network of AI data centers across the United States.
OpenAI’s ambitious revenue projections, aiming for $125 billion annually by 2029, suggest it would possess the financial capacity for such a colossal cloud expenditure. Other potential customers mentioned include Chinese e-tailer Temu, a recent Oracle client, and TikTok, which currently utilizes Oracle Cloud services in the U.S.
The unprecedented demand for AI-related computing power is clearly driving Oracle’s strategic moves. The company plans to invest an astonishing up to $500 billion in infrastructure by 2029 to meet this surging demand.
This includes the development of a sprawling AI data center campus for Project Stargate near Dallas, Texas, which is anticipated to house approximately 400,000 Nvidia GB200 superchips, valued at around $40 billion. Oracle’s capital expenditures have already tripled, from $7 billion in fiscal year 2024 to over $21 billion in fiscal year 2025, underscoring the scale of its commitment.
Oracle CEO Safra Catz stated that the company is “off to a strong start” in its fiscal year 2026, having secured multiple large cloud services agreements. Larry Ellison, Oracle’s founder and CTO, had previously hinted at a substantial order for “all available cloud capacity,” further fueling anticipation for this undisclosed mega-deal.
Oracle projects its cloud infrastructure revenue to grow by over 70% this year and aims to exceed $104 billion in total sales by fiscal year 2029, largely propelled by this transformative contract and its ongoing expansion in the AI cloud sector.
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