OpenAI, the company that created ChatGPT, has signed a deal with Oracle to lease 4.5 gigawatts (GW) of computing power. The contract is worth around $30 billion per year, making it one of the largest cloud deals in artificial intelligence to date, according to the Financial Times.
This deal marks a significant expansion of OpenAI’s Stargate project, which the company launched jointly with SoftBank in January. The goal of the project is to harness vast computing power to develop advanced artificial intelligence models and meet consumer demand for products like ChatGPT.
According to sources, Oracle will develop several data centers across the United States to meet the terms of the new Stargate contract. The 4.5 GW of power is equivalent to about a quarter of the current operating capacity of data centers in the United States.
Oracle’s shares rose sharply to a record high following the announcement of the deal. The deal is worth nearly three times the $10.3 billion in annual revenue the company expects to generate from its data center infrastructure business in 2025.