OpenAI has entered into one of the largest cloud-computing agreements ever recorded, securing access to $300 billion worth of computing power from Oracle over the next five years, according to a report by the Wall Street Journal on Wednesday.

The deal underscores the soaring demand for advanced computing infrastructure as artificial intelligence companies race to scale their technologies. OpenAI, the maker of ChatGPT, requires immense processing capacity to train and operate its large language models and other AI tools.

Oracle, which has been aggressively expanding its cloud business, is expected to provide the backbone for these operations, further cementing its position as a key player in the AI boom. Analysts suggest that such long-term commitments signal both the intensity of competition in the cloud sector and the scale of resources needed to power next-generation AI.

While neither company has formally disclosed the financial details, the reported contract dwarfs typical cloud service agreements and highlights the strategic partnerships forming between AI developers and cloud providers.

Industry watchers note that the arrangement could reshape the balance of power in cloud services, where Amazon, Microsoft, and Google currently dominate. With this deal, Oracle strengthens its foothold in the AI ecosystem, while OpenAI gains the computing leverage required to maintain its global lead in generative AI development.