Latent Space AI Oracle’s Bet on the Future of Compute
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Oct 2, 2025 Oracle is making waves with its massive investment in compute capabilities, indicating a shift in focus from software to hardware. OpenAI's new Stargate data centers will significantly boost capacity, with plans for hefty power needs. There's a buzz around Nvidia's extensive support and funding, driving a thriving ecosystem in AI. Leadership changes at Oracle reflect this rapid growth. Meanwhile, concerns about energy consumption and grid strain from these giant data centers have emerged, raising important questions about sustainability.
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Massive US Stargate Data Center Build
- OpenAI is building five new Stargate data centers with Oracle and SoftBank inside the United States.
- The planned capacity is about seven gigawatts, enough energy to power over five million homes.
NVIDIA Moves From Chips To Infrastructure
- NVIDIA is directly investing in data center buildouts because customers must buy GPUs to fill these facilities.
- This shifts NVIDIA from GPU vendor to financier of the infrastructure that consumes its hardware.
Circular Financing Fuels Stock Rallies
- Major AI players are creating a circular flow of financing: NVIDIA funds data centers, OpenAI signs LOIs, Oracle raises capital.
- These interlinked commitments are driving significant stock price moves across the ecosystem.