OpenAI and Oracle have entered into a significant agreement that will enhance computing capabilities under the Stargate project, aimed at developing AI infrastructure in the US.
Additional Power for Stargate
OpenAI has agreed to rent 4.5 GW of power from Oracle, marking an unprecedented step for scaling computing power. One gigawatt is comparable to the capacity of one nuclear power plant, capable of supplying electricity to approximately 750,000 American homes. Now, all that energy will be directed towards the Stargate project, which aims to boost computing capabilities for AI products.
Infrastructure Expansion Plans
Oracle has already established a large data center in Abilene, Texas, for OpenAI. However, to meet increased demand, multiple data centers will need to be developed across the US. Locations being considered include Texas, Michigan, Wisconsin, and Wyoming, alongside plans to expand the existing center in Abilene.
Oracle's Financial Results
Following the announcement of the Stargate initiative's expansion, Oracle shares surged by 3.9% to a record high of $227.46. Oracle has also signed a cloud contract worth $30 billion in annual revenue, exceeding its current cloud business size. Despite some financial strains, S&P analysts view Oracle's long-term cloud strategy positively.
The agreement between OpenAI and Oracle underscores the importance of computing power for the further development of artificial intelligence projects and highlights the significance of collaboration among tech giants.
