$Oracle (ORCL.US)$Clay Magouyrk, one of the two senior executives appointed last month to lead the software company, believes that OpenAI is capable of covering the substantial costs associated with its consumption of cloud infrastructure services.
Magouyrk told CNBC's David Faber on Monday at the Oracle AI World conference that OpenAI is 'certainly' capable of paying $600 billion for a year’s worth of cloud resources. In July, OpenAI agreed to a five-year deal with Oracle worth over $300 billion. 'Look at their growth rate; you know, they're approaching a billion users. It's unheard of,' Magouyrk said during an interview in Las Vegas alongside Oracle CEO Mike Sicilia.
OpenAI stated last week that its flagship chatbot, ChatGPT, now has 800 million active users per week. The chatbot officially launched in 2024, and OpenAI reported a net loss of $5 billion.
Magouyrk noted that OpenAI’s growth underpins its cloud expenditure. Mike Sicilia, the other CEO, highlighted the integration of OpenAI with Oracle's healthcare systems and predicted it would have "a tremendous impact across industries." OpenAI utilizes Oracle,$CoreWeave (CRWV.US)$, Google, and$Microsoft (MSFT.US)$Use$NVIDIA (NVDA.US)$chips, while simultaneously collaborating with$Broadcom (AVGO.US)$to co-develop custom AI processors.
