News Summary

• OpenAI and Oracle announced a $300 billion, five-year agreement this week.
• But key details are missing and questions around power and payment remain.
• The deal is a reminder that, despite Oracle’s legacy status, the company still plays a major role in AI infrastructure.
• OpenAI has committed to spend around $60 billion a year for compute from Oracle and $10 billion to develop custom AI chips with Broadcom.
• But power is another question, or more specifically where the companies plan to source the energy needed to run this level of compute.