Stargate OpenAI: Giant Leap or Financial Bubble? $30B Oracle Deal and Expert Doubts
Stargate OpenAI: Giant Leap or Financial Bubble? $30B Oracle Deal and Expert Doubts
OpenAI Inks USD 30B Deal with Oracle for US-Based Data Centers
OpenAI has inked a $30 billion annual contract with Oracle to lease 4.5 GW of computing power (1 GW ≈ the output of a nuclear reactor), doubling down on its AI infrastructure ambitions.
The deal fuels OpenAI’s $500 billion Stargate project, with Oracle building data centers across eight U.S. states.
Stargate aims to bolster U.S. dominance in AI, countering China’s growing influence and advancing AI integration into military systems.
But it’s not all rosy. Experts question Stargate’s financial viability. Elon Musk called the $500 billion investment “unrealistic,” claiming SoftBank lacks even $10 billion in confirmed funds. While OpenAI disputes this, funding details remain murky.