CNBC’s Kristina Partsinevelos joins ‘Money Movers’ to discuss OpenAI and Oracle's new 4.5GW data center expansion.

San Francisco

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Oracle and OpenAI are collaborating to add 4.5 gigawatts of data center capacity, aligning with a U.S. government pledge to develop 10 gigawatts of AI infrastructure over four years. This expansion comes as OpenAI and SoftBank scale back their ambitious Stargate joint venture, which originally aimed for a $500 billion investment.

Despite the reduction in Stargate's scope, Oracle stands to benefit from a $30 billion annual deal to host OpenAI's AI workloads. Market analysts note that the shift represents a reallocation of projects rather than a retreat, with Oracle, Google Cloud, and CoreWeave absorbing demand previously intended for Stargate. While concerns remain about the scale of AI investment figures, Oracle is currently leading much of the infrastructure build-out.

Oracle and OpenAI add 4.5GW data center capacity

Welcome back. OpenAI and Oracle are expanding their data center deal. They're building four and a half gigawatts of additional capacity as the Wall Street Journal reports that OpenAI's Stargate joint venture with SoftBank is meanwhile being scaled back. For today's tech check, Christina Partzenevelis has more on how Oracle could emerge as the big winner from all of this. Christina. Well, Kelly, OpenAI and Oracle say that buildout will count towards the White House's pledge to develop 10 gigawatts of AI infrastructure in the U.S. over four years. At the same time, like you mentioned, SoftBank and OpenAI have been scaling back their ambitious Stargate plans. That puts Oracle in a stronger position. Why? Because OpenAI already signed a $30 billion per year deal with Oracle to host its AI workloads, effectively positioning Oracle as the fallback if Stargate fails to deliver on its original $500 billion vision, which was what that Wall Street Journal article was about. That said, CEO Sam Altman insisted this morning that OpenAI still plans to, quote, significantly expand the ambitions of Stargate beyond that $500 billion target. But Wall Street wasn't really betting on big Stargate related spending in 2025 or 2026 anyways, because $500 billion in spending takes a while to build out. Morgan Stanley notes the Wall Street Journal article looks worse than it actually is, since OpenAI has already shifted demand to Oracle, Google Cloud and CoreWeave. So while Oracle shares are down about two and a half percent on this report, there appears to be a reallocation, not a retreat, redirecting projects from SoftBank link sites into Oracle's already active builds. Yes, there are definitely concerns about whether massive AI investment figures are being overstated. Kelly, you and I spoke about this yesterday briefly, but the AI build out is still happening. And for now, Oracle, not necessarily Stargate, is doing a lot of the heavy lifting. Kelly.

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Washington

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Global Tariffs

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Middle East Conflict

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Kyiv

Ukraine Invasion

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Taipei

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As Suwayda

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Oracle and OpenAI add 4.5GW data center capacity

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