Oracle cuts 30,000 jobs; lands $300B OpenAI cloud deal

Oracle cut more than 30,000 jobs, reported fiscal fourth-quarter revenue of $19.2 billion and announced a five-year, $300 billion cloud computing agreement with OpenAI that begins in 2027. The company said it will spend $70 billion on data-centre and AI infrastructure in fiscal 2027. Oracle shares fell about 8% in after-hours trading.

The $19.2 billion in Q4 revenue slightly exceeded analysts’ expectations of $19.1 billion. Oracle reported cloud revenue rose 47% year over year and its Oracle Cloud Infrastructure business grew 93%. Remaining performance obligations totaled $638 billion. Despite those gains, the company issued flat guidance for the coming quarter.

Under the OpenAI arrangement, which starts in 2027, OpenAI is expected to pay Oracle roughly $60 billion a year over five years. Oracle described the contract as a committed revenue stream that supports its planned data-centre expansion. The company said savings from recent workforce reductions will help fund part of the buildout.

Oracle raised about $48 billion in debt and equity during fiscal 2026 and intends to raise another $40 billion in fiscal 2027 to finance construction of new facilities and related infrastructure. The company disclosed that the $70 billion planned spend in fiscal 2027 will support the OpenAI contract and other cloud workloads.

Company executives highlighted the cloud growth metrics in the earnings release and noted that constructing large-scale data centres requires time and capital before producing steady revenue. Quarterly guidance did not reflect immediate revenue from the OpenAI agreement or the infrastructure program.

Shares dropped roughly 8% after hours and were down nearly 8% for the week as investors weighed near-term spending and additional financing against the future revenue tied to the OpenAI deal. Analysts pointed to data-centre construction schedules and the pace of capacity deployment as factors that will determine when the investment translates into measurable revenue growth.

The market for AI infrastructure expanded sharply in 2026, with technology companies spending an estimated $650 billion on related capacity. Oracle’s share of that market increased after the OpenAI partnership was announced. Oracle reported that the recent workforce reductions occurred in the past quarter and were part of a shift in payroll dollars toward infrastructure investment, followed by financing moves to support planned construction.