OpenAI Signs $30 Billion Annual Contract to Lease 4.5 Gigawatts of Computing Power from Oracle

OpenAI has signed a contract with Oracle to lease 4.5 gigawatts of computing power, in a deal valued at $30 billion annually, making it one of the largest artificial intelligence infrastructure deals.

This move represents a significant expansion in the "Stargate" project, launched by OpenAI in partnership with SoftBank early last January, aiming to provide massive computing capabilities for developing artificial intelligence models like GPT and meeting the increasing demand from users.

Oracle is set to build a series of new data centers in several U.S. states, including Texas, Michigan, New Mexico, and Ohio, to fulfill the contract terms. The leased capacity (4.5 gigawatts) equals about a quarter of the current operational capacity of data centers in the United States.

This collaboration is part of the massive investments in "Stargate", amounting to $500 billion to establish advanced data centers in the United States and around the world. The project has attracted $50 billion in investments from founding partners, including Oracle and the Abu Dhabi Sovereign Fund.

Oracle recently announced a $30 billion cloud computing contract from annual revenues starting in 2028, without disclosing the client's identity. However, informed sources confirmed to the Financial Times that OpenAI is the beneficiary, as part of its expansion strategy for the "Stargate" project.

Despite Oracle's delayed entry into the cloud computing market, it is currently experiencing a growing demand for its services, as major companies enhance their infrastructure to operate artificial intelligence systems.

This collaboration puts Oracle at the forefront of competition with technology giants like Amazon and Microsoft in the race to provide the necessary infrastructure for general artificial intelligence.