OpenAI has sealed a groundbreaking $30 billion annual deal with Oracle to lease 4.5 gigawatts (GW) of computing power for its Stargate initiative, marking one of the largest AI cloud contracts ever. This deal is nearly three times Oracle’s 2025 cloud revenue of $10.3 billion. To fulfill OpenAI’s demand, Oracle is expanding its data center capacity across the U.S., including sites in Texas, Michigan, and Wisconsin, while augmenting the Abilene site from 1.2 GW to 2 GW. OpenAI is also exploring additional sites in New Mexico, Georgia, Ohio, and Pennsylvania. The Stargate project, announced in January, involves partners including Oracle and SoftBank Group Corp., aiming to invest $500 billion in AI infrastructure. Oracle’s push into cloud computing has significantly boosted its revenue, although it has raised concerns about cash flow strain, according to S&P. OpenAI is also collaborating on a Stargate project in the UAE with major firms including Nvidia and Cisco.
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