Oracle Corporation (NYSE:ORCL) co- CEO Clay Magouyrk expressed confidence in OpenAI’s ability to cover the hefty costs of its cloud infrastructure.
OpenAI Can Afford $60 Billion Cloud Bill: Magouyrk
Magouyrk, who was appointed as Oracle’s co-CEO last month, told CNBC in an interview on Monday that “of course” OpenAI can afford the $60 billion annual cloud services bill.
"Just look at the rate at which they've grown to, you know, almost a billion users,” he said.
OpenAI said last week that its flagship ChatGPT chatbot, which was publicly launched less than three years ago, now has 800 million weekly active users. In 2024, OpenAI recorded a $5 billion net loss.
Fellow CEO Mike Sicilia stated that Oracle has begun integrating OpenAI's AI models into a patient portal designed for accessing electronic health records.
OpenAI rents out Nvidia (NASDAQ:NVDA) graphics chips to run its models through Oracle, as well as CoreWeave, Google (NASDAQ:GOOG) (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT). The company is also developing a custom AI processor to be built by Broadcom (NASDAQ:AVGO).
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OpenAI’s Chip Push Amid Financial Strain
OpenAI’s financial stability has been a topic of concern, especially after the company’s inability to meet its financial obligations due to a high cash burn rate came to light in a report.
The Sam Altman-led company entered a five-year agreement with Oracle in September. Worth more than $300 billion, the deal includes integrating OpenAI’s AI models into Oracle’s patient portal to access electronic health records.
Last month, Altman admitted that some upcoming AI features will be restricted to paying users due to high compute costs, though he pledged the company aims to make its technology more affordable over time.
Meanwhile, Oracle's bold expansion into cloud infrastructure has paid off, with its stock surging 85.5% year-to-date—significantly outperforming the NASDAQ's 17.7% gain during the same period. Shares closed up 5% on Monday.
Benzinga's Edge Rankings place Oracle in the 92nd percentile for momentum and the 70th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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