Latest news with #Stargate
Business Times
2 hours ago
- Business
- Business Times
Oracle, OpenAI expand Stargate deal for more US data centres
[NEW YORK] OpenAI has agreed to rent a massive amount of computing power from Oracle data centres as part of its Stargate initiative, underscoring the intense requirements for cutting-edge artificial intelligence (AI) products. The AI company will rent additional capacity from Oracle, totalling about 4.5 gigawatts of data centre power in the US, according to sources familiar with the work who asked not to be named, discussing private information. That is an unprecedented sum of energy that could power millions of American homes. A gigawatt is akin to the capacity from one nuclear reactor and can provide electricity to roughly 750,000 houses. Earlier this week, Oracle announced that it had signed a single cloud deal worth US$30 billion in annual revenue beginning in fiscal 2028 without naming the customer. This Stargate agreement makes up at least part of that disclosed contract, according to one of the sources. Stargate – OpenAI's project with partners including Oracle and SoftBank Group to invest US$500 billion in AI infrastructure – was first announced in January at the White House. So far, Oracle has developed a massive data centre in Abilene, Texas, for OpenAI alongside development partner Crusoe. To meet the additional demand from OpenAI, Oracle will develop multiple data centres across the US with partners, the sources said. Sites in states including Texas, Michigan, Wisconsin and Wyoming are under consideration, in addition to expanding the Abilene site from a current power capacity of 1.2 gigawatts to about two gigawatts, they said. OpenAI is also considering sites in New Mexico, Georgia, Ohio and Pennsylvania, one of the sources said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up These new projects will be part of Stargate, and details of the plans may still change, according to a source familiar with the plans. OpenAI and Crusoe declined to comment on the plans. Oracle did not return a request for comment. Oracle shares climbed following the news and closed up 5 per cent to US$229.98, a record high. The stock has jumped 38 per cent this year, fuelled by investor enthusiasm for its cloud business. Oracle, known for its database software, has gained traction in the market for renting out computing power and storage over the Internet, in part by targeting clients focused on AI work. This has led to a jump in revenue and expenses. The US$30 billion deal is more than the current size of its entire cloud infrastructure business. Credit ratings firm S&P wrote on Wednesday (Jul 2) that Oracle's cloud infrastructure building spree was straining cash flow and that the current spending pace is higher than anticipated. Still, it viewed Oracle's cloud strategy favourably over the long term. OpenAI said in May it was helping develop a Stargate project in the United Arab Emirates with Oracle, Crusoe, AI chipmaker Nvidia, Cisco Systems and G42, an AI company backed by the country's sovereign wealth fund. BLOOMBERG
Yahoo
7 hours ago
- Business
- Yahoo
Oracle, OpenAI Expand Stargate Deal for More US Data Centers
(Bloomberg) -- OpenAI has agreed to rent a massive amount of computing power from Oracle Corp. data centers as part of its Stargate initiative, underscoring the intense requirements for cutting-edge artificial intelligence products. Struggling Downtowns Are Looking to Lure New Crowds NYC Commutes Resume After Midtown Bus Terminal Crash Chaos What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law Massachusetts to Follow NYC in Making Landlords Pay Broker Fees The AI company will rent additional capacity from Oracle totaling about 4.5 gigawatts of data center power in the US, according to people familiar with the work who asked not to be named discussing private information. That is an unprecedented sum of energy that could power millions of American homes. A gigawatt is akin to the capacity from one nuclear reactor and can provide electricity to roughly 750,000 houses. Stargate — OpenAI's project to buy computing power from Oracle for AI products — was first announced in January at the White House. So far, Oracle has developed a massive data center in Abilene, Texas, for OpenAI alongside development partner Crusoe. To meet the additional demand from OpenAI, Oracle will develop multiple data centers across the US with partners, the people said. Sites in states including Texas, Michigan, Wisconsin and Wyoming are under consideration, in addition to expanding the Abilene site from a current power capacity of 1.2 gigawatts to about 2 gigawatts, they said. OpenAI is also considering sites in New Mexico, Georgia, Ohio and Pennsylvania, one of the people said. These new projects will be part of Stargate, and details of the plans may still change, according to a person familiar with the plans. OpenAI and Crusoe declined to comment on the plans. Oracle didn't return a request for comment. Oracle shares gained as much as 3.9% to $227.46, a record high, following the news. The stock has jumped 36% this year, fueled by investor enthusiasm in its cloud business. Earlier this week, Oracle announced that it had signed a single cloud deal worth $30 billion in annual revenue beginning in fiscal 2028 without naming the customer. This Stargate agreement makes up at least part of that disclosed contract, according to one of the people. Oracle, known for its database software, has gained traction in the market for renting out computing power and storage over the internet, in part by targeting clients focused on AI work. This has led to a jump in revenue and expenses. The $30 billion deal is more than the current size of its entire cloud infrastructure business. Credit ratings firm S&P wrote Wednesday that Oracle's cloud infrastructure building spree was straining cash flow and that the current spending pace is higher than anticipated. Still, it viewed Oracle's cloud strategy favorably over the long term. OpenAI said in May it was helping develop a Stargate project in the United Arab Emirates with Oracle, Crusoe, AI chipmaker Nvidia Corp, Cisco Systems Inc. and G42, an AI company backed by the country's sovereign wealth fund. --With assistance from Josh Saul, Min Jeong Lee and Naureen S. Malik. (Updates with share price in the seventh paragraph.) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Bloomberg
7 hours ago
- Business
- Bloomberg
Oracle, OpenAI Expand Stargate Deal for More US Data Centers
OpenAI has agreed to rent a massive amount of computing power from Oracle Corp. data centers as part of its Stargate initiative, underscoring the intense requirements for cutting-edge artificial intelligence products. The AI company will rent additional capacity from Oracle totaling about 4.5 gigawatts of data center power in the US, according to people familiar with the work who asked not to be named discussing private information.
Time of India
15 hours ago
- Business
- Time of India
Oracle stock surges: Hits record high on $30 billion cloud deal; revenue to flow from FY28
Representative image Oracle Corp's stock soared 4% on Monday to a record $218.63 after a regulatory filing revealed a major cloud computing agreement that could add more than $30 billion in annual revenue beginning fiscal 2028. The deal, which was disclosed ahead of a company-wide meeting, marks a significant milestone in Oracle's pivot to AI infrastructure and cloud services. CEO Safra Catz, in a Securities and Exchange Commission (SEC) filing, said Oracle is 'off to a strong start in FY26,' adding, 'Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28,' reported CNBC. Oracle did not name the customer, but speculation is high that it may be tied to OpenAI and SoftBank's $500 billion Stargate project, which aims to create a vast global network of AI data centres. Founder Larry Ellison had earlier hinted in March that Oracle expected to finalise a deal with Stargate 'fairly soon.' The $30 billion figure is nearly triple the $10.3 billion Oracle generated from its data centre operations in FY25, reported Financial Times. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sensação de queimação nos pés? Insira essa receita ao acordar G!Saú Undo The deal won't impact Oracle's FY26 guidance, but it cements its growing clout in the cloud and AI sectors. Analysts believe the revenue surge reflects long-term demand for computing infrastructure amid supply constraints at competitors like Microsoft. As per Financial Times, Oracle is spending around $40 billion on Nvidia's high-performance chips to power new data centres for OpenAI in Abilene, Texas. Although Stargate is 'still in formation,' Catz told investors that the company had already booked some revenue from OpenAI, with more coming from other contracts. Oracle's stock has jumped over 33% in 2024, buoyed by strong earnings, cloud expansion, and strategic AI tie-ups. These include a recent partnership with IBM and the Stargate venture. Earlier this year, Oracle also inked a cloud services deal with Chinese e-commerce giant Temu, adding further weight to its global ambitions. Having been slow to enter the cloud computing market, Oracle now finds itself among the top beneficiaries of surging demand for AI processing power. With this blockbuster cloud deal, the Austin-based tech giant appears well-positioned to capitalise on the next wave of digital transformation. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
CNA
a day ago
- Business
- CNA
FTC seeks more information about SoftBank's Ampere deal, Bloomberg News reports
The U.S. Federal Trade Commission is seeking more details about SoftBank Group Corp's planned $6.5 billion purchase of semiconductor designer Ampere Computing, Bloomberg News reported on Tuesday. The inquiry, known formally as a second request for information, suggests the acquisition may undergo an extended government review, the report said. SoftBank announced the purchase of the startup in March, part of its efforts to ramp up its investments in artificial intelligence infrastructure. The report did not state the reasoning for the FTC request. SoftBank, Ampere and the FTC did not immediately respond to a request for comment. SoftBank is an active investor in U.S. tech. It is leading the financing for the $500 billion Stargate data centre project and has agreed to invest $32 billion in ChatGPT-maker OpenAI.
