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Sources: Oracle and OpenAI abandoned plans to expand a Stargate Texas data center amid financing disputes; Meta considers leasing the planned expansion site

Oracle Corp. and OpenAI have scrapped plans to expand a flagship artificial intelligence data center in Texas after negotiations dragged …

Bloomberg

Discussion

  • @dariocpx @dariocpx on x
    In other words: lenders stopped bankrolling Oracle
  • @edzitron Ed Zitron on x
    As @kakashiii111 said - why does NVIDIA need to put down a $150m deposit? Meta has the money too! This is so utterly peculiar
  • @kakashiii111 @kakashiii111 on x
    Remember: Nvidia will spend its money wherever, on whatever, and on whoever is necessary to keep the “GPU demand” Titanic afloat. He is willing to deploy all of Nvidia's cash reserves.
  • @anissagardizy8 Anissa Gardizy on x
    on the OpenAI-Oracle deal in Abilene, Texas... -Oracle is still leasing eight buildings for OpenAI from Crusoe (~400k Nvidia Blackwell GPUs).  Two are completed so far.  -OpenAI doesn't want to add Vera Rubin chips to the site and would put them in campuses slated to have VRs
  • @amitisinvesting Amit on x
    BREAKING: ORACLE $ORCL & OPENAI END PLANS TO EXPAND THEIR TEXAS DATA CENTER SITE oh boy...not that surprising but all the chip names going red
  • @mjbommar Michael Bommarito on x
    we're 1-2 events away from a 2008 meltdown, especially in private credit and related single names... [image]
  • @kakashiii111 @kakashiii111 on x
    Why does Nvidia pay a $150M deposit? Meta has great cash flow, right? They can stand by themselves, right?
  • @trengriffin Tren Griffin on x
    “Predictions are hard especially about the future,” except for this: https://www.bloomberg.com/...
  • @benitoz Ben Pouladian on x
    Oracle/OpenAI drop their Stargate expansion lease. Meta swoops in the same day. That's not weakness that's a hot real estate market We are so compute constrained that premium datacenter sites don't stay vacant for a minute One man's loss is another's opportunity anon [image]
  • @amitisinvesting Amit on x
    $META IN DISCUSSIONS TO TAKEOVER THIS SPECIFIC DATACENTER SITE Looks like this is an ORCL and OpenAI issue over a broader oversupply of capex/datacenter issue. What a way to head into the weekend...all chip and datacenter names falling off a cliff on the headline.
  • @mikeisaac Rat King on x
    this was a huge press tour moment for the companies like literally five months ago what happened?
  • @edludlow Ed Ludlow on x
    BREAKING: Oracle and OpenAI have scrapped plans to expand their flagship Stargate AI data center in Abilene, Texas after financing talks dragged and OpenAI's needs shifted. The collapse opened the door for Meta to lease the expansion site from Crusoe — with Nvidia paying a $150M
  • @bradrcarson Brad Carson on x
    I legit can't figure out what's happening in the datacenter buildout these days.
  • @seemacnbc Seema Mody on x
    Source familiar shares that Oracle's mega data center project with @OpenAI in Abilene, TX remains on track and on schedule. -2 of the 8 sites have been completed. -No plans to expand this partnership in Abilene but existing data centers are on track. $orcl $openai #datacenters
  • @aleabitoreddit Serenity on x
    It's honestly impressive Bloomberg titles have managed to crash the Semi Market for a second day in a row. $LITE down 14.4% $NVDA down 3.5% $TSM down 4.4%. On the news that Oracle and OpenAI are not expanding a part of their Stargate project. This looks more legitimate than [imag…
  • @rihardjarc Rihard Jarc on x
    The news about $ORCL and OpenAI ending plans to expand the Texas Data Center site is great news for $MSFT, $AMZN and $GOOGL as OAI will have to lean more towards those compute partners.
  • @sk7037 Sachin Katti on x
    Our flagship Stargate site is one of the largest AI data center campuses in the United States.  We considered expanding it further, but ultimately chose to put that additional capacity in other locations.  Today we have more than half a dozen sites under development across multip…
  • @mvcinvesting M. V. Cunha on x
    For anyone freaking out: This is not a demand problem. We all knew Oracle and OpenAI had set extremely ambitious targets. What we're seeing now is simply reality catching up.
  • @benitoz Ben Pouladian on x
    The real story: OpenAI passed on 6 additional buildings because power won't be ready for a year and by then Rubin replaces Blackwell Why expand with last-gen chips? The 8-building, 400K GPU base build continues This is smart capital allocation, not collapse @anissagardizy8 [image…
  • r/wallstreetbets r on reddit
    Oracle and OpenAI End Plans to Expand Flagship Data Center