Oracle Wins Big in OpenAI's Stargate Push

OpenAI will lease 4.5 GW of data-center capacity from Oracle ORCL, fueling its massive Stargate AI infrastructure buildout across the U.S. and boosting Oracle shares to record highs.

Bloomberg reports that OpenAIbacked by Microsoft (MSFT) and SoftBank (SFTBY)has struck a deal with Oracle to rent 4.5 gigawatts of power capacity for its Stargate Project.

The move comes as OpenAI develops a flagship facility in Abilene, Texas, and vets additional sites in Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio and Pennsylvania. Oracle stock jumped 4% in late trading, capping a month that's seen the shares climb nearly 40%.

Stargate was unveiled in January at the White House as a four-year, $500 billion initiative to shore up U.S. AI infrastructure. Alongside Oracle, key partners include Arm Holdings ARM, Microsoft, Nvidia NVDA and SoftBank. In May, Oracle also joined forces with Nvidia, Cisco CSCO, OpenAI and G42 to launch a parallel Stargate buildout in the UAE.

Securing large-scale power and real estate commitments is critical for AI leaders aiming to train ever-bigger models. By tapping Oracle's data-center footprint, OpenAI hedges against capacity constraints at its own and Microsoft's facilitiesand keeps pace with rivals racing to lock down infrastructure. For Oracle, the agreement vindicates its growing push into cloud services and underscores investor enthusiasm for AI-related revenue streams.

As AI workloads explode, partnerships like OpenAI's with Oracle will determine who controls the foundational plumbing of next-generation computeand which companies capture the lion's share of the AI infrastructure boom.