OpenAI Signs $300B Contract with Oracle

OpenAI has signed a $300B, five-year cloud contract with Oracle starting 2027, potentially the most important in history. The deal accelerates OpenAI’s shift away from Azure exclusivity and builds on its $500B Stargate data center project with SoftBank. Oracle, riding the wave, forecast $144B in annual cloud revenue by 2030 and reported a record $455B backlog, with AI contracts from OpenAI, Meta, and xAI driving a 42% stock surge.

On governance, OpenAI’s nonprofit will retain oversight and a $100B+ equity stake because the for-profit arm transitions right into a public profit corporation. A nonbinding truce with Microsoft secures cloud integration and tech access, but regulatory reviews in California and Delaware remain. The structure positions the nonprofit as probably the most capitalized philanthropic entities worldwide.

On the AI Infra Summit, hardware chief Richard Ho outlined OpenAI’s global-scale compute vision: stateful compute for long-lived agents, racks drawing 600 kW+, optical interconnects beyond copper, and silicon-level safety features like kill switches and secure enclaves.

ChatGPT’s recent Developer Mode also unlocked full Model Context Protocol (MCP) write access this week. Developers can now wire connectors to update Jira tickets, trigger Zapier workflows, or run incident-response automations directly from chat, powered by OAuth, HTTP streaming, and SSE. OpenAI cautions that prompt injection, data exposure, and unintended writes remain serious risks, with all actions requiring explicit confirmation.

Geopolitics can be still in play. After stops at Mar-a-Lago, the White House, and the Middle East, the tech leaders at the moment are headed to the UK with Donald Trump. Sam Altman, Jensen Huang and Tim Cook are confirmed attendees, Bloomberg reports the trip will coincide with major announcements, including billions in data center investments from OpenAI and Nvidia. Read more.

Google’s 58-qubit quantum processor Willow has achieved a physics first, imaging a Floquet topologically ordered state, a highly entangled, non-equilibrium phase of matter previously only theorized. Researchers from TU Munich, Princeton, and Google Quantum AI used a custom interferometric algorithm to map its topological structure and observe exotic particle “transmutations” in real time. These phenomena are practically unsimulatable on classical supercomputers, proving that quantum processors can function experimental labs for matter beyond conventional physics. The work, published in Natureopens the door to next-generation quantum simulations and materials research.

Meanwhile, Google is expanding its AI promoting footprint globally. Its AI Max engine now embeds context-specific ads directly into AI-generated answers. Queries like “the best way to fix low water pressure” can display AI explanations alongside relevant service ads. Over 60% of shopping searches are conversational, and Google’s “AI Mode,” live in 180+ countries, handles bookings and purchases directly, potentially becoming the default.

And more is coming fast. As Logan Kilpatrick, Google’s AI developer relations lead, put it: the team is “locked in for the subsequent few months” with launches stacked. Read more.

Anthropic just gave Claude AI a serious upgrade for workplace users. Team and Enterprise plans now get project-based memory, letting Claude remember workflows, client needs, and ongoing projects, then export those memories per project and even migrate them to ChatGPT or Google Gemini. Users stay on top of things with a memory summary to view, edit, or delete stored info, and admins can shut it off org-wide. On top of that, they’re also introducing Incognito mode for all users.

Chats on this mode bypass memory and conversation history, providing context-free, confidential exchanges. Messages remain stored for not less than 30 days for safety and legal compliance but are excluded from memory.

The rollout hit a real-world snag on Wednesday when Claude.ai, Claude Code, and the API all went down for about half-hour, leaving developers joking about “coding like cavemen.” Read more.

Stability AI just supercharged audio generation with Stable Audio 2.5. Because of the brand new Adversarial Relativistic-Contrastive (ARC) post-training method, the model slashes inference steps from 50 to eight, cranking out three-minute tracks in under two seconds on Nvidia H100 GPUs. ARC skips heavy teacher models and classifier-free guidance, optimizing quality directly. Enterprise users get greater than speed: audio inpainting permits you to extend or tweak clips, deployment works via API or on-prem, and all datasets are fully licensed for industrial use.

Stability can be teaming up with WPP’s Amp to integrate sonic branding into enterprise workflows, promising rights-safe, scalable, and highly customizable branded audio in minutes fairly than weeks. Read more.

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