SAN FRANCISCO (Realist English). Oracle shares surged to a record high of $218.63 on Monday following the announcement of a $30bn cloud services contract, a deal that nearly triples the company’s 2025 data center revenue and signals strong momentum in the group’s AI-related infrastructure business.
The deal, disclosed in a regulatory filing, is expected to start generating revenue by 2028, though Oracle declined to name the client. Founder Larry Ellison had previously hinted at potential contracts with OpenAI and SoftBank’s $500bn Stargate project, which could be the source.
The company’s stock rose 4% by close of trading, having gained as much as 8.6% earlier in the session, and is now up nearly 30% year-to-date.
Chief executive Safra Catz called the agreement part of a broader expansion in Oracle’s cloud operations, describing fiscal 2026 as “off to a strong start” thanks to multiple large-scale service contracts. The company had earlier referenced a partnership with Chinese e-commerce platform Temu, but did not confirm whether it was linked to this announcement.
The $30bn contract marks a turning point for Oracle, whose data center unit earned $10.3bn in FY2025. The group’s cloud infrastructure business saw a 52% increase last quarter, fueled by growing demand for AI computing power and capacity shortages at competitors such as Microsoft.
Oracle’s investment in Stargate — a massive AI-focused data center project — includes a $7bn contribution, with additional funding expected from other partners. The Financial Times reported last month that Oracle would spend around $40bn on Nvidia chips to equip new data centers in Abilene, Texas, where OpenAI is a key client.
While Catz recently told investors that Stargate is “still in formation,” she confirmed that Oracle had already booked some revenue from OpenAI, though most current growth stems from contracts with other firms.
Neither Oracle nor OpenAI provided immediate comment on the new deal.
