Oracle CEO Magouyrk: 'Of course' OpenAI can pay $60 billion per year

During a recent interview at Oracle's AI World conference, CEO Clay Magouyrk expressed strong confidence in OpenAI's ability to finance its extensive cloud infrastructure needs, stating, "of course" the company can handle a $60 billion annual cost. Magouyrk's remarks came alongside fellow CEO Mike Sicilia, as they discussed OpenAI's impressive growth trajectory, which includes nearly a billion users. This rapid expansion has prompted Oracle to enter a significant five-year partnership with OpenAI, valued at over $300 billion. OpenAI's flagship product, the ChatGPT chatbot, has gained remarkable traction since its launch less than three years ago, boasting 800 million weekly active users as reported last week. However, the company also faced challenges, recording a $5 billion net loss in 2024. Sicilia highlighted Oracle's initiatives to integrate OpenAI's AI models into healthcare, specifically within a patient portal for electronic health records, following Oracle's acquisition of Cerner for approximately $28 billion in 2022. He noted the substantial impact that OpenAI's technology could have across various industries. Additionally, OpenAI relies on Nvidia graphics chips for model deployment through Oracle, while also collaborating with CoreWeave, Google, and Microsoft. In a separate venture, OpenAI is working with Broadcom to develop a custom AI processor, with plans to jointly deploy 10 gigawatts of these new chips. Sicilia emphasized the importance of energy resources in scaling this infrastructure, asserting, "I think it's a factor of time, not a factor of if we'll have enough power." In response to this news, Oracle's stock surged nearly 6% on Monday and has seen an impressive 86% increase this year, bringing its market capitalization close to $900 billion.