By CIO Insider Team
 

OpenAI has signed a deal with tech giant Oracle to build $300 billion in computer infrastructure that will be used to develop artificial intelligence technologies and deliver them to businesses and consumers.

The two firms have consented to invest $300 billion in building data centers over approximately five years. In July, Oracle disclosed some aspects of the agreement in a regulatory document, but did not provide numerous details.

Oracle's stock surged over 40 percent following the announcement that it had secured more than $317 billion in future contract revenue in its most recent financial quarter.

Project Stargate is a component of a broader initiative to establish AI data centers globally. OpenAI, Amazon, Google, Meta, and Microsoft intend to invest over $300 billion collectively in large data centers by year-end.

Also Read: Government Raises Semiconductor Investment By 84 Percent

In January, OpenAI, Oracle, and the Japanese conglomerate SoftBank joined President Donald Trump in declaring their commitment to develop at least $100 billion in computing infrastructure in the United States as part of Project Stargate.

They also mentioned intentions to increase the initiative to $500 billion in the upcoming years. Following its agreement with Oracle, OpenAI has obtained commitments exceeding half of that target.

Also Read: Can Tesla's Entry Accelerate EV Targets of India?

Construction has already begun on data centers in Abilene, Texas, and the companies intend to develop additional sites too.

OpenAI intends to construct a large computing facility in the United Arab Emirates, as part of an agreement between the Trump administration and the Gulf nation. This center is involved in a partnership with Oracle, SoftBank, UAE AI company G42, among others.

Also Read: Semicon India 2025: Designing A Self-Reliant Semiconductor Hub

OpenAI has stated that G42 will also provide funding for the building of data centers in the United States. For each dollar that G42 and its partners put into the UAE, they will allocate a matching sum to the U.S. facilities. The scale of the proposed data center in the Middle East indicates that G42 plans to invest tens of billions of dollars in every nation.