OpenAI and Oracle Sign $300 Billion Deal for AI Data Centers

OpenAI has entered into a $300 billion agreement with Oracle to develop 4.5 gigawatts of data center capacity over five years, significantly expanding its AI infrastructure.

The deal, announced on September 10, 2025, is part of OpenAI's Stargate initiative, a $500 billion project aimed at building AI infrastructure. The 4.5 gigawatts of capacity is equivalent to the electricity produced by more than two Hoover Dams, or the amount consumed by about 4 million U.S. homes.

Construction is already underway at a site in Abilene, Texas, with plans to expand to other locations across the United States.

This partnership marks a significant shift for OpenAI, which previously relied exclusively on Microsoft Azure for its cloud services. By diversifying its cloud infrastructure providers, OpenAI aims to enhance its AI capabilities and meet the growing demand for its services.

Oracle's stock surged following the announcement, reflecting investor confidence in the company's strategic move into AI infrastructure.

The agreement underscores the escalating investments in AI infrastructure as companies race to build the computing power necessary for advanced AI applications.