Oracle Soars to All-Time High on $30 Billion Cloud Megadeal – What Investors Need to Know
Oracle (ORCL) shares surged to a record high after announcing a landmark $30 billion cloud computing contract—a deal that nearly triples its current data center revenue and signals its growing dominance in the AI infrastructure race.
The $30 Billion Game-Changer
- Biggest Cloud Deal in Oracle’s History – The contract dwarfs the $10.3B revenue from its data center business in fiscal 2025.
- Revenue Starts Flowing by 2028 – Per Oracle’s SEC filing, the deal will ramp up over the next few years.
- Mystery Client – Though undisclosed, speculation points to OpenAI or SoftBank’s $500B “Stargate” AI data center project, which Oracle is already backing with a $7B commitment.
Stock Reaction:
📈 +4% to $218.63 (record close) after an intraday peak of +8.6%
📈 +33% YTD – Outperforming many big-tech peers
Why This Deal Matters
- AI Infrastructure Gold Rush – Oracle’s cloud business grew 52% last quarter as AI demand explodes.
- Filling the Cloud Gap – With Microsoft and AWS facing capacity crunches, Oracle is poaching major clients.
- Nvidia Chip Spending Spree – Oracle plans to drop $40B on Nvidia GPUs to power OpenAI’s Texas data centers, per FT.
CEO Safra Catz teased:
“We’ve signed multiple large cloud agreements this year, and this is just the beginning.”
Oracle’s AI Bet: Catching Up to Cloud Giants
While late to the cloud wars, Oracle is now a key AI infrastructure player:
✔ Partnering with OpenAI (first revenue already booked)
✔ Backing SoftBank’s Stargate (a $500B AI data center vision)
✔ Outpacing rivals in data center growth (+52% YoY)
Larry Ellison’s March Hint:
“Expect our first OpenAI and Stargate deals soon.”
Market Impact & What’s Next
- Can Oracle Sustain the Momentum? – Investors will watch if more mega-deals follow.
- Cloud Profitability Questions – Ramping up data centers is costly; margins will be scrutinized.
- AI Arms Race Beneficiary – With AI workloads booming, Oracle’s infrastructure is in high demand.
Key Takeaways for Investors
✅ $30B deal = 3x current data center revenue
✅ OpenAI/Stargate likely the mystery client
✅ Stock at all-time high—but AI tailwinds remain strong
Oracle’s cloud business is no longer an afterthought—it’s becoming a core growth engine. This deal could be the first of many as AI demand reshapes the cloud landscape.
