Recently, its been reported that OpenAI is entering a $300bn contract with Oracle (~$60bn/year), which is roughly 5x its current reported projected gross revenue of $12bn for 2025. Oracle's stock price jumped 40% the other day, likely due to the news.
Please make this make sense for me. Do investors think OpenAI can afford this contract and are truly pricing that into ORCL?
How can OpenAI afford a contract with Oracle that is 5x its current gross revenue per year?
byu/jventura1110 inAskEconomics
Posted by jventura1110