OpenAI has confirmed a massive deal with Oracle, aimed at enhancing its data center services, which is expected to generate $30 billion annually. This contract, initially revealed by Oracle in an SEC filing, has sparked significant interest, propelling Oracle’s stock to an all-time high and making founder Larry Ellison the world’s second richest person. OpenAI revealed that the Oracle deal encompasses 4.5 gigawatts of capacity as part of the Stargate project, a $500 billion endeavor co-developed with Softbank. This capacity is equivalent to the output of two Hoover Dams, sufficient for approximately four million homes. However, the venture requires substantial investment and energy for the construction at the Stargate I site in Abilene, Texas. OpenAI recently reported its annual recurring revenue at $10 billion, underscoring the deal’s potential to triple its current income. Oracle’s recent capital expenditures highlight a major investment in its infrastructure to meet growing demands.
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