OpenAI has entered into a monumental contract with Oracle to acquire $300 billion worth of computing resources over the next five years, according to sources at The Wall Street Journal. This blockbuster announcement caused Oracle’s stock price to skyrocket, soaring by 43% on Wednesday, which led to an estimated $100 billion increase in CEO Larry Ellison’s wealth, allowing him to briefly surpass Elon Musk as the richest person in the world.

Although Oracle’s stock dipped slightly later in the day, Musk reclaimed his position at the top. The impact of this deal highlights the intensity of competition in AI resource management among major players like OpenAI, Meta, and Google.

The Oracle/OpenAI deal is anticipated to be one of the largest cloud contracts ever, with significant investment flowing into AI infrastructure. Scheduled to commence in 2027, this agreement poses considerable risk for both companies, given OpenAI’s costly operations relative to its revenue.

Additionally, OpenAI has partnered with Broadcom to produce its own AI-centric processors, indicating a long-term strategy to reduce reliance on Nvidia’s GPUs.

The climate in AI development sees substantial backing from entities like SoftBank and the Dragoneer Investment group, pushing billions into ventures associated with AI technologies.