OpenAI Expands with Oracle

OpenAI has agreed to lease significant computing power from Oracle's data centres as part of its Stargate initiative. This move highlights the extensive infrastructure demands of advanced AI development.

The Stargate project, backed by investments from SoftBank, Oracle, and MGX, aims to build AI infrastructure within the United States. This includes constructing large-scale data centres equipped with advanced NVIDIA GPUs and requiring substantial power. The project signifies a shift in how AI companies source computing resources, with OpenAI expanding beyond its previous exclusive cloud computing partnership.

With an estimated long-term cost of $500 billion, Stargate intends to meet the growing demand for AI across various sectors, including healthcare, scientific research and automation. The initiative also includes 'OpenAI for Countries', offering infrastructure partnerships to national governments to build local AI data centre capacity.