What just happened? Oracle has secured a cloud computing contract with an undisclosed customer, expected to generate more than $30 billion in annual revenue starting in fiscal year 2028 – nearly three times the size of its current cloud infrastructure business. The company disclosed the agreement in a regulatory filing, marking it as one of the largest cloud deals ever announced.
The identity of the customer behind this landmark deal remains undisclosed, but the scale is remarkable: the contract's yearly value is nearly triple the $10.3 billion that Oracle's cloud infrastructure business generated over the past year. This places the agreement among the largest in the history of cloud computing and signals a dramatic acceleration in Oracle's ambitions for the sector.
Chief Executive Safra Catz told employees that Oracle is "off to a strong start" in its 2026 fiscal year, having signed "multiple large cloud service agreements." She also noted that revenue from Oracle's database products running on other cloud platforms has been growing at an annual rate of over 100 percent.
Oracle has been steadily gaining ground in cloud services, particularly as demand for artificial intelligence infrastructure has surged. The company's data center business experienced a 52 percent increase in its most recent quarter, driven by organizations seeking the computing power required for AI workloads. Capacity constraints at rivals such as Microsoft have also contributed to Oracle's growth.
While Oracle has not officially named the customer for its $30 billion deal, speculation has centered on its partnerships with OpenAI and SoftBank. Earlier this year, Oracle joined these companies in the $500 billion Stargate project, a massive initiative to construct advanced data centers across the US. The Stargate venture aims to expand the nation's AI infrastructure and is already under construction in Texas.
Oracle co-founder Larry Ellison said in March that he expected the company to sign its first contract with OpenAI and Stargate "fairly soon," suggesting that the newly announced deal may be linked to this effort.
Ellison has been vocal about Oracle's strategy to secure large-scale AI and cloud contracts, stating that the company has entered a new era in which billion-dollar deals are becoming routine. He emphasized that Oracle's cloud infrastructure offers faster and more cost-effective AI training than its competitors, making it an attractive partner for organizations with massive computing needs.
Oracle's $30 billion deal not only marks a milestone for the company but also signals a broader shift in the cloud industry, where the race to provide infrastructure for artificial intelligence is driving unprecedented investment and competition. As Oracle continues to expand its partnerships and infrastructure, its role in powering the next generation of AI applications appears poised to grow even further.
At $30 billion per year, Oracle secures one of the largest cloud deals in history
