Oracle Ousts Microsoft—Seals Groundbreaking $100 B OpenAI Stargate Deal
Referencing Article By Bob Evans – Cloud Wars (August 12, 2025)
In a seismic shift for AI infrastructure, Oracle has eclipsed Microsoft to become OpenAI’s preeminent partner in the historic Stargate Project. Cloud Wars reports that Oracle is now poised to secure a multi-year deal estimated to generate $100 billion in revenue over three years, far surpassing what was previously considered the “largest tech contract ever.”
Why This Deal Is Unprecedented
Scope and Scale: While headlines more recently touted a $30 billion-per-year contract between OpenAI and Oracle, Cloud Wars underscores that this figure likely represents just the tip of the iceberg. The annual figure extrapolates to around $82 million per day and, over multiple years, could easily grow into a $100 billion-plus contract.
Microsoft Displaced: Once the exclusive cloud provider and closest partner to OpenAI since 2019, Microsoft’s influence in the AI infrastructure space has waned. Unlike Oracle, Satya Nadella was notably absent from the White House announcement of the Stargate Project.
Oracle’s Strategic Move: Oracle’s Chairman Larry Ellison stood alongside OpenAI CEO Sam Altman and SoftBank CEO Masayoshi Son during the White House reveal of Stargate—positioning Oracle as the leading infrastructure partner. Subsequent OpenAI communications reinforce this shift.
What It Means for the Tech Landscape
This agreement isn't just another headline-grabbing figure; it's a bold statement of intent. It shows OpenAI deepening ties with Oracle, signaling a strategic pivot toward infrastructure built around Oracle's unique capabilities. Meanwhile, Microsoft still supports OpenAI through existing Azure commitments, but its role has clearly been diminished in the Stargate rollout.
Closing Thoughts & iArch Solutions’ View
At iArch Solutions, we understand that mega-deals like this one mark critical inflection points in the tech ecosystem. Oracle’s move highlights the importance of strong infrastructure alignment, long-term strategic partnerships, and agility in seizing emerging opportunities.
If you're evaluating the implications of such partnerships or planning your own AI infrastructure strategy, iArch Solutions is ready to help you navigate these transformative shifts. From initial architectural planning to scaling multi-cloud environments, we help finance and IT leaders eliminate downtime, boost security, and stay audit-ready—ensuring your systems are always ready to meet the demands of tomorrow’s business landscape.
Schedule a discovery call today and ensure your organization isn’t left behind in the next AI frontier.