OpenAI has entered into a cloud computing partnership of unprecedented magnitude with Oracle, signing a $30 billion annual deal. The new data centers will provide 4.5 gigawatts of processing power across the U.S.

OpenAI and Oracle to build new data centers

This capacity accounts for about a quarter of the total data center infrastructure in the country. The agreement significantly expands the scope of OpenAI’s Stargate initiative, which it launched with SoftBank in January 2025.

Oracle’s commitment will include new facilities in states such as Texas, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania. The 1.2 GW Stargate data center in Abilene, Texas, will also be expanded.

The facility is being funded by data center startup Crusoe. Oracle plans to purchase approximately 400,000 GB200 processors from Nvidia to increase capacity at the facility. The transaction will cost approximately $40 billion.

Stargate has raised around $50 billion to date from various investors, including Oracle, SoftBank and Abu Dhabi-based MGX. OpenAI and Oracle aim to increase their global data center investments to $500 billion over the long term. The project is expected to meet the rapidly growing demand for OpenAI’s large language models and products like ChatGPT.

Oracle shares surged to record levels after the deal was announced. The company’s revenue from the deal is almost three times its projected $10.3 billion data center infrastructure revenue for 2025.