AI Breakdown Oracle Joins the AI Arms Race
Oct 2, 2025
Oracle is making waves in the AI cloud market with a major push fueled by a $300 billion letter of intent with OpenAI. New Stargate data centers are sprouting across the U.S., boasting impressive seven-gigawatt capacity. Nvidia's hefty $100 billion investment is driving demand for GPUs, while intertwined funding strategies among AI giants signal a race to the top. Amid these developments, Oracle's stock has surged, accompanied by leadership changes and an ambitious corporate bond plan to support expansion.
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Massive U.S. Stargate Data Center Build
- OpenAI is partnering with Oracle and SoftBank to build five new Stargate data centers in the U.S. with planned capacity around seven gigawatts.
- Jaeden Schafer highlights this scale as enough energy to power more than 5 million homes and calls it absolutely massive.
Geographic Spread Of New Sites
- The five new sites span Texas, New Mexico, Ohio, and the Midwest, avoiding coastal concentration.
- Jaeden suggests geographic choices reflect grid, cost, and policy considerations for large-scale builds.
NVIDIA's Strategic Huge Investment
- Nvidia is committing huge capital to the AI infrastructure race, planning to invest $100 billion in AI.
- Jaeden frames Nvidia's moves as strategic because data centers will need vast numbers of Nvidia GPUs, making its investment a natural play.