Oracle’s (ORCL) closed up at all time high of $229.98 on $30 Billion AI Cloud Deal that Could Triple Revenue by 2028
July 2, 2025 – Oracle has confirmed a major cloud services agreement expected to deliver over $30 billion in annual revenue starting in fiscal 2028. While the client remains unnamed, analysts widely point to OpenAI’s Stargate project, a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, SoftBank, and MGX.
📦 Deal Highlights
- Oracle to provide 4.5 GW of cloud infrastructure capacity in the U.S.
- Revenue from the deal begins in FY2028 (starts Oct 2027), projected to exceed $30B/year.
- Oracle’s current cloud revenue is ~$10B in FY2025, making this a potential 3x expansion.
💡 Why It Matters
- Positions Oracle as a serious hyperscaler, challenging AWS, Azure, and Google Cloud.
- Reinforces Oracle’s pivot toward AI infrastructure and large-scale cloud leasing.
- Part of the broader Stargate AI buildout, aiming to reshape U.S. AI infrastructure.
📈 Market Reaction
- ORCL: $227.78 USD
- +8.82 (+4.03%) on the news
📅 Timeline at a Glance
| Date | Event |
|---|---|
| Jan 2025 | Stargate initiative launched ($500B plan) |
| FY2025 | Oracle cloud/IaaS revenue ≈ $10B |
| FY2028 | $30B+/year cloud revenue from new deal |
Bottom Line:
With this landmark agreement, Oracle is poised to triple its cloud business and solidify its role as a key player in the AI arms race.