Sources: OpenAI has agreed to rent additional computing power from Oracle, totaling ~4.5 gigawatts of US data center power, as part of its Stargate initiative
OpenAI is dead man walking then, Microsoft owns all the IP, and it burns $60+b in competitor venture capital. … @onefeincat : Enough power to send 3.71 Martys McFly back to 1985, and they're using it on the plagiarism machine instead. — This is why we can't have nice things. [embedded post] Ed Zitron / @edzitron.com : Okay so Oracle is buying $40bn of chips for Stargate, they are the ones that signed the contract for Stargate with Crusoe (a 15 year contract!) to build it, and now they are committing to build data centers *just for OpenAI*. Seems risky to me — www.theinformation.com/briefings/ op... [image] Ed Zitron / @edzitron.com : OpenAI destroying Oracle would be so funny [embedded post] @inspector-w : For reference, it only takes 1.21 gigawatts of electricity, at 88 MPH, to fully charge a flux capacitor, and time travel. [embedded post] X: Mario Nawfal / @marionawfal : OPENAI: I WANT ENOUGH POWER TO FRY EARTH! ORACLE: DEAL! OpenAI is asking Oracle for 4.5 gigawatts of energy (that's “Back to the Future” levels of power) to run more of their massive AI projects. Several U.S. states are being considered to host these mega Stargate sites, so get [image] Ed Ludlow / @edludlow : Breaking: OpenAI is going to rent addtional 4.5 gigawatts of data center capacity from Oracle $ORCL reports @BrodyFord_ @rachelmetz. Its an expansion of the Stargate imitative. Sites in states including Texas, Michigan, Wisconsin and Wyoming are under consideration Morgan / @morqon : the current site in texas operates at 200+ megawatts, with a second phase bringing it to 1.2 gigawatts by mid-2026 the oracle deal expands it to 2 gigawatts [image] Ed Ludlow / @edludlow : Oracle spiked to session high +3.88% on the news (its trading at fresh record high at the mo). @prometheanaix : 🔥OpenAI just locked in 4.5 gigawatts of raw compute from Oracle—enough juice to light up millions of homes, and they're pumping it straight into AI. Feels like OpenAI just commissioned its own digital power grid. This isn't just scaling, it's building the backbone for whatever [image] Andrew Curran / @andrewcurran_ : This is probably part of the mysterious $30 billion a year deal that Oracle announced last week without naming the customer. New potential Stargate sites: Texas, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio and Pennsylvania, Rohan Paul / @rohanpaul_ai : OpenAI just booked 4.5 GW of capacity from Oracle Cloud Infrastructure. makes Stargate the largest known AI compute order. The agreement sits inside Oracle's earlier unnamed cloud contract worth 30 B in annual revenue that begins next fiscal cycle. To deliver, Oracle will [image] Forums: r/singularity : OpenAI sign with Oracle for an additional 4.5 gigawatts of Stargate capacity with sites being considered in eight states r/OKLOSTOCK : Oracle, OpenAI expand Stargate deal for more US data centers r/OpenAI : OpenAl to expand computer power partnership Stargate (4.5 gigawatts) in new Oracle data center deal r/artificial : OpenAl to expand computer power partnership Stargate (4.5 gigawatts) in new Oracle data center deal r/wallstreetbets : Oracle to rent 4.5 megahurtz to OpenAI in new computing deal, revealing part of prev. disclosed $30 billion/year contract
Context & Ripple Effects
Stargate entered this report with questions about financing and how much of its announced buildout represented new, executable capacity. An earlier examination of the initiative highlighted those unresolved issues, while Oracle's reported plan to supply a Texas site with hundreds of thousands of Nvidia GB200 chips gave the project a concrete infrastructure path.
The reported rental agreement turns that infrastructure plan into a much larger demand commitment: OpenAI is positioning Oracle as a major external compute provider rather than relying on a single cloud relationship.
First-order effects
- OpenAI gains a reported claim on roughly 4.5GW of US data-center capacity for Stargate, shifting its near-term challenge from securing compute access to bringing that capacity online and paying for its use.
- Oracle takes on a much larger role in supplying OpenAI, with the customer commitment supporting its data-center and hardware deployment plans.
Second-order effects
- The arrangement intensifies the race for AI-ready power, sites, chips, and construction capacity; other cloud providers and model developers face a stronger incentive to lock in long-duration infrastructure.
- Oracle's execution exposure rises alongside the opportunity: the earlier questions around Stargate's financing and delivery now matter directly to a capacity provider building around a concentrated customer commitment.
Third-order effects
- If comparable agreements persist, frontier-model companies may increasingly procure compute through long-term capacity contracts, making cloud operators and data-center developers central counterparties in AI expansion.
- AI infrastructure could become more utility-like—defined as much by power delivery and buildout reliability as chip availability—while concentrating financial and operational risk in a small set of large projects.
The trend: This is one data point in AI compute shifting from flexible cloud consumption toward long-duration, power-constrained infrastructure commitments.