OpenAI has finalized a significant $30 billion cloud deal with Oracle, marking a pivotal moment in AI data center expansion. The partnership involves OpenAI renting 4.5GW of capacity under the Project Stargate initiative, a government-backed scheme aimed at enhancing AI infrastructure across the U.S. and globally. This venture, announced in January with support from SoftBank, plans to invest $500 billion over four years in AI advancements. Oracle will spearhead the development of new data centers, expanding its Abilene, Texas site from 1.2GW to 2GW. Other potential locations for development include Michigan, Wyoming, Georgia, Ohio, and Pennsylvania. The deal, which starts generating revenue in 2028, has significantly boosted Oracle’s forecast, with CEO Safra Catz highlighting the company’s robust growth and cloud service agreements. Stay updated with ITPro for the latest insights and reports on AI trends and cybersecurity challenges.
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