OpenAI is the customer behind a $30 billion annual cloud deal with Oracle Corp (NYSE:ORCL, ETR:ORC) disclosed earlier this week, according to multiple media reports citing sources with knowledge of the deal.
Reports indicate OpenAI will rent about 4.5 gigawatts of data center power across multiple US sites as part of its Stargate initiative.
This 4.5GW capacity is roughly a quarter of all operational US data center power capacity.
Oracle will build and expand data centers in states including Texas, with the Abilene campus expanding from 1.2GW to 2GW, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania, sources said.
The deal is part of OpenAI's $500 billion Stargate infrastructure project, aimed at massively expanding AI data center capacity in the US and internationally. Stargate is a joint venture involving Oracle as an investor, along with partners such as SoftBank, Nvidia, and Cisco.
Besides Oracle, OpenAI continues to use Microsoft Azure, Google Cloud, and other providers to meet its computing needs, while also planning to build its own data centers in the future.
Shares of Oracle added 2.7% on the news, up more than 10.5% in the past week since the $30 billion cloud deal was first disclosed.