OpenAI Lands Monumental 4.5GW Data Center Contract with Oracle
OpenAI has inked a groundbreaking agreement with Oracle to secure 4.5 gigawatts of data center power capacity across the United States. This forms part of the ambitious Stargate Project. This unprecedented contract represents enough energy to power millions of American homes, marking a significant milestone in AI infrastructure development.
The deal forms part of Oracle’s $30 billion annual cloud contract and directly bolsters the $500 billion Stargate initiative. This initiative is a joint venture between OpenAI, Oracle, and SoftBank, announced earlier this year. Following the announcement, Oracle’s stock surged 5%, hitting a record high of $229.98 as investors acknowledged the massive revenue potential.
Oracle will develop multiple data centers across various states. These include:
- Texas
- Michigan
- Wisconsin
- Wyoming
- New Mexico
- Georgia
- Ohio
- Pennsylvania
The first facility in Abilene, Texas, is already under construction and could expand from 1.2GW to 2GW capacity. This partnership significantly diminishes OpenAI’s reliance on Microsoft for computing infrastructure, while supporting its AI model development through 2030.
Source: Bloomberg