Bloomberg Tech OpenAI, Oracle Expand Stargate Project
5 snips
Jul 3, 2025 Eric Wasikowski, CEO of Bespoke Partners and an expert in executive search, joins the discussion on OpenAI's groundbreaking collaboration with Oracle to expand the Stargate project, enhancing compute capacity significantly. They explore the implications for cloud computing and market dynamics. Additionally, the conversation delves into current labor market trends, AI's influence on productivity, and the challenges faced by seed stage startups in the tech landscape. Insights into legislative maneuvers and the evolving semiconductor sector also provide a rich context for the tech industry's future.
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Oracle-OpenAI Stargate Scale
- OpenAI and Oracle's deal will add 4.5 gigawatts of compute capacity, an unprecedented scale for cloud infrastructure.
- This deal could be the largest cloud contract ever, involving tens of billions in computing power and chips.
Oracle's Big AI Cloud Win
- Oracle benefits hugely from the OpenAI deal, with estimated $30 billion annual revenue from it starting fiscal 2028.
- The deal triples Oracle's cloud revenue but may pressure margins due to high operational costs on chips and power.
AI Infrastructure Drives Chip Demand
- Oracle's infrastructure buildout will drive massive demand for GPUs, benefiting NVIDIA and AMD significantly.
- One gigawatt of capacity roughly equals $60 billion in capex, with chips alone accounting for about half of that cost.
