OpenAI, Oracle Partner on US$300 Billion Computing Infrastructure

OpenAI  has signed an agreement with technology giant Oracle to build US$300 billion in computing infrastructure, The Wall Street Journal reported. The funding will support the construction of data centers across the United States over approximately five years, aimed at developing and delivering AI technologies to businesses and consumers.

The deal represents a key phase of Project Stargate, OpenAI’s large-scale initiative to expand high-capacity computational infrastructure. Robust processing power is essential for training increasingly complex AI models and delivering services efficiently to a global client base.

Project Stargates was initially announced in January, with participation from Larry Ellison, Chairman, Oracle; Masayoshi Son, CEO, SoftBank; Sam Altman, CEO, OpenAI; and then-President Donald Trump. The original announcement included a US$100 billion commitment, highlighting the collaboration’s strategic significance.

The US$300 billion investment aligns with an industry-wide surge in AI-focused data center capacity. Combined spending by OpenAI, Amazon, Google, Meta, and Microsoft is expected to exceed US$300 billion this year. Project Stargate’s total funding goal of US$500 billion positions OpenAI at the forefront of AI infrastructure development.

The announcement immediately impacted markets: Oracle’s stock rose more than 40% after revealing it would add over US$317 billion in future contract revenue.

Construction has started in Abilene, Texas, with plans to expand to additional US sites. OpenAI also plans an international computing complex in the UAE, involving Oracle, SoftBank, and Emirati AI firm G42. Under a reciprocal investment clause, every dollar G42 invests in UAE facilities will be matched in US data centers, potentially totaling tens of billions, strengthening the AI infrastructure ecosystem and diversifying funding sources.