OpenAI Needs Data Centers So Much, It Signed a $300B Deal With Oracle

Core Insights - OpenAI has committed to a $300 billion deal with Oracle over five years to support its generative AI operations, marking one of the largest cloud computing contracts [1][2] - The contract includes the delivery of up to 4.5 gigawatts of power capacity, equivalent to the energy used by 4 million homes or two Hoover Dams, set to take effect in 2027 [2] - The number of data centers in the US is projected to nearly double from 2021 to 2024, with a 9% annual increase in demand expected through 2030, leading to a significant rise in electricity consumption by 2035 [3] Company Developments - OpenAI has diversified its cloud portfolio, moving beyond its previous exclusive reliance on Microsoft Azure [3] - The Stargate Project, announced in January, aims to invest $500 billion over four years in AI infrastructure, with partnerships including Oracle, Microsoft, Nvidia, and Softbank [4] - The Stargate facility is currently under construction in Abilene, Texas, contributing to the growing demand for data centers [5] Market Context - The rapid growth of generative AI products has raised concerns about a potential AI bubble, as noted by OpenAI CEO Sam Altman [5]