OpenAI established a partnership with Oracle, signing off on an agreement to buy $300 billion in computing power over a five-year period, according to reporting by The Wall Street Journal. The artificial intelligence giant is furthering its data center business, Stargate, with the deal.
While OpenAI announced its partnership with Oracle back in July, the value of the contract was reported for the first time on Wednesday. The deal will commence in 2027 as OpenAI paces toward profitability in 2029, the WSJ article mentioned. The generative AI giant has encountered challenges impeding the rollout of its products, namely a significant computing shortage. However, it’s banking on the continued adoption of ChatGPT by global businesses and governments as it pursues its data center venture.
The new contract will require 4.5 gigawatts of power capacity, which is roughly the amount consumed by 4 million homes, according to the article. Oracle is working alongside Crusoe and other data center companies to establish facilities nationwide across states like Wyoming, Pennsylvania, Texas, Michigan and New Mexico.
