OpenAI is poised to rent approximately 4.5 gigawatts of data center power from Oracle to support its Stargate initiative, highlighting the significant energy demands of advanced AI technologies. This capacity, enough to power millions of households, will be activated through new Oracle data centers built across the U.S. As part of a larger $500 billion AI infrastructure project, Oracle recently announced a major cloud services contract expected to generate $30 billion annually from fiscal 2028. This move may signify tensions between OpenAI and Microsoft, especially as OpenAI offers discounted ChatGPT subscriptions that could undermine Microsoft’s interests. Strained relations arise as OpenAI pushes for a for-profit transformation, which Microsoft is reportedly hesitant to support due to potential risks to its access to OpenAI’s intellectual property. Failure to finalize this transition by year-end may jeopardize OpenAI’s funding from investor SoftBank, formalizing a rift that could lead to confrontation.
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