With a single $30 billion contract, Oracle has redefined its cloud business—and set a record high for the stock on the stock exchange. The volume is almost three times the entire annual revenue that the US company most recently generated with its fastest-growing segment, the data center business.
In a statement to the U.S. Securities and Exchange Commission (SEC), the company announced on Monday that the contract is expected to generate revenue from 2028. The customer's identity remains undisclosed, but Oracle founder Larry Ellison stated in March that they were close to concluding deals with OpenAI and SoftBank's Stargate project – a megaproject with a volume of up to 500 billion dollars.
The price of Oracle stock climbed 4 percent to $218.63, reaching an all-time high. So far this year, the stock has already gained about a third in value.
Oracle CEO Safra Catz stated that they had a "strong start to the fiscal year 2026" and had concluded several major cloud agreements. In addition to Stargate, a previously known contract with the Chinese e-commerce platform Temu is also among the growth drivers.
The dynamics in the cloud market are particularly evident in the area of data center infrastructure: Oracle reported a 52 percent increase in revenue last quarter. The company from Austin, Texas, also benefits from capacity shortages at competitors like Microsoft and increasing demand for computing power for AI applications.
In the Stargate project, Oracle is not only a technology partner but has also made a funding commitment of $7 billion. However, the main investments are expected from other financiers. According to the Financial Times, for the first phase of the infrastructure alone – including data centers in Abilene, Texas – Oracle is expected to invest around $40 billion in Nvidia chips.
While initial revenues from OpenAI contracts have already been booked, the focus is currently on other customers, according to Catz. Stargate is still in the development phase, but the revenue potential is considerable.
