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Oracle Shares Skyrocket on $30bn Cloud Computing Contract Announcement
Oracle shares hit an all-time high following the announcement of a monumental $30 billion cloud computing contract. The tech giant, valued at around $620 billion, revealed in a regulatory filing that the deal is expected to generate revenue starting in 2028, nearly tripling the annual revenue from its fastest-growing division.
The company’s stock closed 4% higher at a record level of $218.63, experiencing an 8.6% increase earlier in the trading session. Oracle’s stock has surged by nearly 30% year-to-date, reflecting the market’s positive response to the news.
Oracle’s CEO, Safra Catz, expressed optimism about the company’s performance in fiscal year 2026, citing the signing of multiple significant cloud service agreements. While the customer’s identity remains undisclosed, founder Larry Ellison hinted at potential contracts with OpenAI and SoftBank’s Stargate data center project.
The $30 billion deal marks a major milestone for Oracle, representing a substantial increase from the $10.3 billion revenue generated by its data center business in the previous fiscal year. Despite a delayed entry into the cloud computing market, Oracle has witnessed a surge in demand for data center infrastructure, particularly for artificial intelligence applications.
The company’s partnership with Stargate, where it has committed $7 billion in funding, underscores its commitment to expanding its cloud computing capabilities. Oracle’s investment in Nvidia’s high-performance computer chips to power data centers for OpenAI further solidifies its position in the AI landscape.
With the rapid growth in demand for computing power for AI models, Oracle is poised to capitalize on the market dynamics and strengthen its position as a key player in the industry. The company’s strategic initiatives, including partnerships and investments in cutting-edge technologies, signal its readiness to meet the evolving needs of businesses in the digital era.
As Oracle continues to drive innovation and expand its cloud computing offerings, investors and industry analysts eagerly anticipate the impact of this landmark $30 billion contract on the company’s growth trajectory. The future looks promising for Oracle as it leverages its strengths to capitalize on the opportunities presented by the digital transformation landscape.
Additional reporting by Cristina Criddle in San Francisco
