Bloomberg Intelligence Oracle, OpenAI Expand Stargate Deal for More US Data Centers
Jul 3, 2025
A recent agreement sees OpenAI renting an astonishing 4.5 gigawatts of computing power from Oracle, fueling its ambitious Stargate initiative. This deal leads to the construction of multiple new data centers across the U.S., showcasing the rapid evolution in cloud services. The tech landscape is shifting, with AI increasingly dominating corporate strategies amid significant investments. Additionally, insights on JP Morgan's risky maneuvers in the bond market reveal the strategic challenges businesses face in the current economic climate.
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OpenAI's Massive Oracle Deal
- OpenAI's Stargate deal with Oracle involves renting 4.5 gigawatts of data center power across the US for AI computing needs.
- This massive infrastructure will be built over several years, funded partly by SoftBank, marking Oracle's major push into cloud AI services.
Oracle's Cloud Spending Surge
- Oracle's cloud infrastructure spending is rising sharply from $5-6 billion to well over $25 billion to compete in the AI cloud space.
- Having OpenAI as a customer allows Oracle to invest heavily upfront and secure future workload revenues.
Oracle Gains Cloud Traction
- Oracle was mostly absent in cloud infrastructure five years ago but gained credibility by landing clients like TikTok.
- OpenAI's contract could add $30 billion in revenue by FY28, significantly strengthening Oracle's cloud business.