Oracle and OpenAI have confirmed the $30 billion per year AI data center contract reported earlier this month. The deal will provide OpenAI’s Stargate project with 4.5 gigawatts of additional data center capacity in the U.S. Oracle is a Stargate partner and has been working in partnership with OpenAI on the Stargate I site, coming online in Abilene, Texas. “This additional partnership with Oracle will bring us to over 5 gigawatts of Stargate AI data center capacity under development, which will run over 2 million chips,” OpenAI explains. The “investment will create new jobs, accelerate America’s reindustrialization, and help advance U.S. AI leadership.”

“This significantly advances our progress toward the commitment we announced at the White House in January to invest $500 billion into 10 gigawatts of AI infrastructure in the U.S. over the next four years,” OpenAI writes in a blog post. “We now expect to exceed our initial commitment thanks to strong momentum with partners including Oracle and SoftBank.”

On June 30, Oracle told investors it signed a $30 billion a year cloud deal but did not disclose the customer, leading to reports that it was OpenAI. The news sent Oracle’s stock to a new high, prompting Bloomberg to write that company founder and CTO Larry Ellison had become the second richest person in the world.

But TechCrunch reports the move “isn’t a straightforward win for Oracle,” which has a lot of construction ahead, “a costly endeavor, both in cash and in energy.” Expansion on what was a preexisting site in Abilene that is being upgraded to Stargate I is being done in partnership with Colorado-based energy startup Crusoe and is expected to come online in mid-2026.

In an update on the Abilene site, OpenAI said it “now powers some of OpenAI’s compute workload for running and training its algorithms” and that “Oracle began delivering the first racks of Nvidia GB200 chips last month,” according to Bloomberg.

While Stargate partner SoftBank has also committed to significantly funding OpenAI, the Japanese company is not involved in “financing any of the new capacity” mentioned in this announcement, writes Bloomberg, noting that SoftBank has been “hitting snags in financing talks amid broader economic uncertainty around global tariffs.”

The Wall Street Journal explains that 4.5 gigawatts “would consume the equivalent power of more than two Hoover Dams, enough to power about four million homes.”

Aside a “smaller deal OpenAI struck with CoreWeave, OpenAI has now completed data-center deals for nearly as much capacity as Stargate promised for this year,” WSJ reports.

Related:
Musk Allies to Raise Up to $12 Billion for xAI Chips as Startup Burns Through Cash, The Wall Street Journal, 7/22/25
OpenAI Seeks Additional Capital from Investors as Part of Its $40 Billion Round, Wired, 7/22/25