OpenAI Expands Cloud Power Acquisition from Oracle through Stargate Initiative

OpenAI has secured a significant amount of computing power from Oracle’s data centers as part of the Stargate initiative, according to sources cited by Bloomberg. The ChatGPT developer will be leasing a total of 4.5 gigawatts of data center capacity in the United States from Oracle.

This unprecedented energy capacity could supply electricity to millions of American homes. For context, a nuclear reactor capable of generating 1 gigawatt can provide power for approximately 750,000 households.

At the end of last month, Oracle announced a cloud computing deal projected to bring in $30 billion annually starting in 2028. However, the company did not disclose the identity of the other party involved in the agreement.

Stargate is a collaborative effort between OpenAI, Oracle, and SoftBank aimed at investing $500 billion in AI infrastructure. The initiative was announced earlier this year. Oracle and Crusoe are constructing a large data center for OpenAI in Abilene, Texas. Oracle is set to invest $40 billion in Nvidia AI accelerators for this facility.

To meet the increasing demand from OpenAI, Oracle, with support from partners, will develop several data centers across the United States. The company is exploring locations in Texas, Michigan, Wisconsin, and Wyoming, alongside the expansion of the Abilene site. The capacity of this data center is expected to increase from 1.2 gigawatts to around 2 gigawatts.

OpenAI is also considering sites in New Mexico, Georgia, Ohio, and Pennsylvania, as reported by a Bloomberg source. These new projects will be part of the Stargate initiative, although the specifics of these plans may shift, according to informants.

In May, OpenAI revealed its involvement in the development of a 5-gigawatt data center in the UAE, which will be the largest infrastructure project in the AI sector globally. OpenAI will collaborate on this initiative with Oracle, Crusoe, Nvidia, Cisco, and G42.