Oracle(US:ORCL) Zheng Quan Shi Bao·2025-09-11 18:02Core Insights - Oracle has signed a groundbreaking $300 billion (approximately ¥2.14 trillion) computing power procurement contract with OpenAI, igniting global investor enthusiasm for computing and AI sectors [1][2][4]. Group 1: Contract Details and Market Impact - The contract, effective from 2027 and spanning five years, is one of the largest cloud computing contracts in history, requiring at least 4.5 GW of power supply, equivalent to the capacity of seven Daya Bay nuclear power plants, capable of powering 6.7 million Chinese households [2]. - Following the announcement, Oracle's stock surged over 40%, closing with a 35.95% increase, adding $250 billion to its market capitalization, which reached $922.22 billion (approximately ¥65.68 trillion) [2]. - The news also positively impacted A-share markets, with related sectors such as optical communication modules, AI chips, and computing power concepts seeing significant gains, with increases of 9.86%, 9.3%, and 7.43% respectively [2]. Group 2: Future Projections and Financial Performance - Oracle reported a $317 billion increase in future contract revenue for Q1 of fiscal year 2026, with a 359% growth in RPO (Remaining Performance Obligations) to $455 billion, and anticipates surpassing $500 billion in RPO soon [3]. - The company expects its cloud infrastructure revenue to reach $18 billion in fiscal year 2026, a nearly 77% year-over-year increase, with projections of $32 billion, $73 billion, $114 billion, and $144 billion in the subsequent four fiscal years [3]. Group 3: Strategic Implications and Industry Trends - The contract signifies a milestone in the global AI computing power demand, marking a transition of computing power into a "strategic infrastructure" for the AI era [6]. - Analysts suggest that the collaboration between Oracle and OpenAI represents a strategic turning point in the computing power industry, elevating computing power to the same level as oil and chips as a strategic asset [6]. - The demand for intelligent computing, particularly for AI training and inference, is becoming the core growth area, indicating a shift in the computing market dynamics [8]. Group 4: Long-term Market Outlook - The global AI market is projected to exceed $800 billion by 2028, with a compound annual growth rate (CAGR) of over 32%, and data center spending is expected to approach $3 trillion by 2029 [9]. - By 2035, AI is anticipated to contribute over ¥11 trillion to China's GDP, potentially driving a tenfold to hundredfold increase in computing power demand [9].