Oracle co-founder Larry Ellison believes the real breakthrough for AI will come from inference, which has potential in fields from robotics to drug design.

One of the largest cloud contracts in history has been signed between OpenAI and Oracle. The American artificial intelligence company has signed a staggering $300 billion agreement with

Oracles meteoric rise stunned Wall Street as ORCL jumped 31% premarket, fueled by a $500B AI cloud revenue surge. From cloud laggard to AI leader, the companys deals with OpenAI, Meta, and Nvidia signal booming demand for Oracle Cloud Infrastructure.

The deal forms part of Stargate, a $500 billion AI infrastructure initiative announced earlier this year by OpenAI, Oracle, and Japan’s SoftBank.

Stifel analyst Brad Reback maintained a Buy rating and raised the price target from $250 to $350. Evercore ISI Group maintained an Outperform and raised the price target on Oracle stock from $270 to $340. Wolfe Research analyst Alex Zukin maintained Oracle with an Outperform and raised the price target from $300 to $400.

Oracle has landed a $300 billion OpenAI deal, among the largest in cloud history. The agreement, reported by The Wall Street Journal, will see OpenAI purchase computing power from Oracle over the next several years in a bet that could reshape the cloud market. The scale of the pact underscores both the opportunities and risks tied to the AI boom.

Since the close of trading last Friday, shares of the cloud giant Oracle ( ORCL -6.00%) had ripped close to 35%, as of 1:06 p.m. ET on Sept. 11. Earlier this week, Oracle reported earnings for its first fiscal quarter of 2026 (ending Aug. 31) that blew away Wall Street.