OpenAI and Oracle have signed a $30 billion cloud agreement to enhance AI model development. This deal involves OpenAI renting 4.5 gigawatts of data centre power from Oracle as part of the 'Stargate' initiative. Oracle will expand its data centre footprint across multiple US states, including Texas, Michigan, Wisconsin, and Wyoming, to meet OpenAI's demands.
The agreement aims to provide substantial computing resources for developing advanced AI models and potentially artificial general intelligence (AGI). Oracle plans to expand its existing data centre in Abilene, Texas, and is considering additional sites in New Mexico, Georgia, Ohio, and Pennsylvania. The 4.5GW capacity represents a significant portion of the current operational data centre capacity in the US.
Oracle is investing $7 billion in the Stargate venture and plans $25 billion in capital expenditure next year. This partnership signifies Oracle's strategic pivot towards becoming a major cloud infrastructure provider, leveraging its strengths to carve out a specialised role in the AI ecosystem.
