Oracle inks vast AI data center partnership with OpenAI
Oracle, in partnership with OpenAI, is set to generate over $30 billion annually from their AI infrastructure agreement, a revenue milestone they anticipate reaching within three years. This ambitious project is part of OpenAI's larger goal to invest up to $100 billion in 10 gigawatts of AI infrastructure, as revealed by the company and its partners.
The heart of this initiative is the construction of data centers across the United States, with a significant focus on Texas. One of these Texas data centers, scheduled for completion by mid-2026, will house up to 400,000 Nvidia Corp. GB200 Grace Blackwell accelerators, each incorporating two Blackwell B200 graphics cards and a 72-core Grace central processing unit.
Oracle is not only constructing this Texas data center but also one of the other data center campuses in Texas, as part of OpenAI's broader strategy, the Stargate initiative. This network aims to establish a network of artificial intelligence data centers across the United States.
SoftBank, which became OpenAI's largest backer this year, is contributing up to three-quarters of a remaining $30 billion funding initiative that is anticipated to commence on July 28. SoftBank also owns the Stargate trademark. However, ongoing disagreements with SoftBank Group Corp. complicate OpenAI's construction efforts.
The locations for these data centers are not finalised, but it is expected that a small OpenAI data center will be completed by the end of the year, potentially in Portland, Oregon, or Ohio. The UK has also emerged as a key strategic partner for OpenAI.
As Oracle begins the process of moving GB200-equipped server racks into this data center, OpenAI researchers are already utilising this hardware for AI training and inference workloads. The company's ambitious plans for AI infrastructure are indeed taking shape, one data center at a time.
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