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OpenAI expands the StarGate initiative with a 4.5 gigawatt power purchase agreement from Oracle
OpenAI has just expanded the StarGate initiative by acquiring an additional 4.5 gigawatts of electricity from Oracle Corp. in America. This agreement is part of the $500 billion StarGate project, which includes giants like OpenAI, Oracle, SoftBank, and Abu Dhabi's MGX, aimed at upgrading AI infrastructure across the United States.
Oracle has built a large data center in Abilene, Texas, for OpenAI, but will need to develop many more data centers to meet the increasing demand. Potential locations include Texas, Michigan, Wisconsin, and Wyoming.
After the news was announced, Oracle's stock rose 3.9% to a record high of $227.46. The company also signed a $30 billion cloud agreement, demonstrating strong growth in the cloud infrastructure sector.