OpenAI and Oracle signed USD 300 billion computing deal

OpenAI has reportedly confirmed the signing of a staggering USD 300 billion deal with Oracle to purchase a massive amount of computing power. The purchase will be concluded over a period of five years. The deal is being considered as one of the largest cloud contracts. The contract is expected to provide OpenAI with around 4.5 gigawatts of computing capacity.

The agreement is a key part of the “Stargate” project, a plan to build a series of AI supercomputers. With the value of USD 300 billion, this partnership is being viewed as a massive bet on the future of AI and highlights Oracle’s strategic stance for its cloud infrastructure business (OCI).

Stargate is not a single location but a joint venture to build a series of AI supercomputing data centres across the United States and potentially other countries. These new data centres will house hundreds of thousands of GPUs and require advanced cooling systems and uninterrupted power supplies. The facilities are designed for high power density and will likely use technologies like closed-loop, direct-to-chip liquid cooling to manage the immense heat generated by AI hardware.

The funding is expected to come from private investment, with major contributions from its founding partners in the Stargate joint venture, primarily SoftBank and OpenAI itself. The venture reportedly has an initial investment of over USD 100 billion, with a significant portion sourced through debt financing.