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Oracle shares soared to a record high, as the database giant announced a $30bn cloud computing contract worth nearly triple the annual revenue it generates from its fastest-growing division.
The tech group, which is valued at about $620bn, said in a regulatory filing on Monday that it had signed a deal that would start to bring in revenue in 2028.
Oracle shares were up 4.9 per cent at midday in New York, but had earlier gained as much as 8.6 per cent to hit a record high of $228.22. The company’s stock has risen by about one-third year-to-date.
Chief executive Safra Catz said that the company was “off to a strong start” in fiscal year 2026 having signed “multiple large cloud service agreements”. The company had previously touted a deal with Chinese ecommerce platform Temu.
Oracle did not disclose the name of the customer, though founder Larry Ellison said in March that the he expected Oracle to sign its first contract with OpenAI and SoftBank’s $500bn Stargate data centre project “fairly soon”.
The $30bn deal is a significant milestone for Oracle, representing nearly triple the $10.3bn in revenue the company generated from its data centre business in its 2025 fiscal year.
The Austin, Texas-based company was slow to enter the cloud computing market but has experienced a sharp increase in demand for data centre infrastructure, up 52 per cent in its most recent quarter, as companies seek computing power to run artificial intelligence.
Oracle has been one of the main beneficiaries from capacity constraints at rivals including Microsoft, with large tech companies ploughing hundreds of billions of dollars into the build-out of data centres to train and deploy artificial intelligence models.
Oracle earlier this year became a partner in Stargate. It has pledged $7bn for the venture, but the bulk of financing is expected from other investors.
The company is expected to spend roughly $40bn on Nvidia’s high-performance computer chips to power the first series of data centres for OpenAI in Abilene, Texas, the Financial Times reported last month.
Catz told investors earlier this month that Stargate was “still in formation” and that it had booked some revenue from OpenAI, but most of its growth was driven by contracts with other companies.
OpenAI and Oracle did not immediately respond to requests for comment.
Additional reporting by Cristina Criddle in San Francisco
