OpenAI, supported by Microsoft, has leased 4.5 gigawatts of computing power from Oracle under its Stargate initiative. Oracle is investing $7 billion in the project and forecasting $25 billion in capital expenditures by 2026. They recently secured a $30 billion cloud deal linked to Stargate, set to generate annual revenue from fiscal 2028, likely involving OpenAI. The Stargate project aims to create expansive AI data centers in the U.S. and globally, with investments totaling $500 billion, proposed by partners including Oracle and SoftBank. Potential data center locations span multiple states, while Oracle is enhancing a 1.2GW facility in Texas, requiring nearly 400,000 Nvidia chips for an estimated $40 billion. Oracle’s stock has risen 38% year-to-date, outperforming major indices. Analysts, including Wedbush’s Dan Ives, note Oracle’s strategic position in the AI infrastructure sector, predicting it will attract institutional investors.
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