OpenAI has secured a groundbreaking deal with Oracle to lease 4.5 gigawatts (GW) of computing power, valued at approximately $30 billion annually. This agreement is a pivotal moment for the AI industry, significantly expanding the OpenAI Stargate data center project initiated with SoftBank earlier this year. By leveraging this immense computing capacity, OpenAI aims to enhance its AI models, including its popular ChatGPT product, and meet rising consumer demand. Oracle is set to establish multiple new data centers across the United States to meet this demand, with potential locations including Texas, Michigan, and Ohio. This venture is part of a larger push involving a $500 billion investment from OpenAI and SoftBank, with Oracle contributing $7 billion and plans for $25 billion in future capital expenditures. Following the announcement, Oracle’s share prices hit a record high, reflecting its rapid growth in the cloud computing and data center infrastructure sectors.
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