Oracle CEO Boldly Declares: ’Of Course’ OpenAI Can Handle $60B Annual Cloud Computing Bill

Oracle's chief executive just dropped a bombshell confidence vote in AI's financial firepower.

The Cloud Computing Gambit

When questioned about OpenAI's ability to shoulder a staggering $60 billion annual cloud infrastructure bill, the Oracle CEO didn't hesitate. His immediate 'of course' response signals either revolutionary foresight or corporate hubris of epic proportions.

Financial Reality Check

That $60 billion figure isn't pocket change—it's more than the GDP of entire nations. Yet the tech giant's leadership appears utterly unfazed by the scale. Either they know something we don't about AI revenue streams, or this is the most expensive bet in tech history.

Market Implications

The statement sends shockwaves through tech and finance circles alike. If AI companies can truly support infrastructure costs that dwarf some military budgets, we're looking at a complete recalibration of what's possible in digital economics.

Meanwhile, traditional finance executives are probably still calculating how many yachts $60 billion could buy—proving once again that tech moves faster than conventional money can count.

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Unsurprisingly, Magouyrk pointed to OpenAI’s success by saying it’s rare for a company to reach nearly a billion users so quickly. As a matter of fact, ChatGPT, OpenAI’s popular chatbot, launched less than three years ago and now has 800 million weekly active users. Separately, Co-CEO Mike Sicilia stated that Oracle is already using OpenAI’s models in its healthcare software, especially in patient portals tied to Cerner, which Oracle acquired for $28 billion in 2022.

It’s worth noting that to power its AI models, OpenAI rents Nvidia (NVDA) chips through Oracle while also working with CoreWeave (CRWV), Google (GOOGL), and Microsoft (MSFT). At the same time, OpenAI is building its own custom AI chip, which Broadcom (AVGO) will manufacture. Together, OpenAI and Broadcom plan to roll out 10 gigawatts worth of chip capacity, a massive infrastructure build that will need a lot of energy. However, Sicilia said that getting enough power is just a matter of time.

Is ORCL Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 27 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $346.45 per share implies 12.5% upside potential.