The financial experts, citing information from The Wall Street Journal, have raised questions regarding the recently signed contract between OpenAI and Oracle. Under this agreement, Oracle will provide USD 300 billion in computing power over a period of roughly five years.

This deal necessitates the provision of 4.5 gigawatts of power capacity, which is comparable to the electricity generated by more than two Hoover Dams or the amount used by four million homes.

Collaboration Initiatives

The collaboration commences in 2027 and involves various elements. OpenAI, previously relying on exclusive Microsoft-provided computing power, has now secured new provider partnerships with Oracle and MGX, alongside other entities like the data-center builder Crusoe.

Under this agreement, data centers are to be constructed across several states including Wyoming, Pennsylvania, Texas, Michigan, and New Mexico. This expansion is expected to generate over 100,000 jobs in the United States, primarily focusing on construction and operational roles associated with maintaining these centers.

Stargate Project

This partnership falls under OpenAI’s Stargate Project, which aims at developing new AI infrastructure in the US through strategic collaborations. The project also involves other notable partners like SoftBank and Oracle.

Shortly following this announcement, Oracle launched its AI Center of Excellence for Healthcare, a resource hub designed to assist healthcare organizations in deploying and optimizing AI technologies across their operations.