- As the Stargate initiatives in both the US and UAE progress, Oracle is well-positioned to emerge as a leader in AI infrastructure, driving innovation and growth in an increasingly digital world.
- Planned AI data centre in the UAE, slated to commence operations in 2026, will incorporate approximately 100,000 of Nvidia’s advanced GB300 chips.
- Oracle’s engagement in the Stargate Project secures a long-term revenue stream through a 15-year lease agreement to provide computing power to OpenAI.
Oracle Corporation is poised to reap substantial benefits from its collaboration with OpenAI in the ambitious US data centre initiative known as the Stargate Project.
The venture involves Oracle’s significant investment of approximately $40 billion to acquire around 400,000 of Nvidia’s cutting-edge high-performance GB200 chips, dedicated to constructing a state-of-the-art data centre in Abilene, Texas.
The partnership not only underscores Oracle’s commitment to advancing cloud infrastructure but also strategically positions the company within the rapidly evolving artificial intelligence (AI) landscape.
A foremost advantage for Oracle lies in the enhancement of its cloud computing capabilities. By integrating a vast number of Nvidia’s GB200 chips into its infrastructure, Oracle will substantially bolster its computational power.
This positions Oracle to more effectively compete with industry giants such as Amazon, Microsoft, and Google, which have long dominated the cloud services market.
Long-term revenue
The infusion of advanced hardware enables Oracle to offer more robust, scalable, and efficient cloud services, which are critical to meeting the growing demand for AI-driven applications and data processing.
Moreover, Oracle’s engagement in the Stargate Project secures a long-term revenue stream through a 15-year lease agreement to provide computing power to OpenAI.
The partnership ensures a stable and predictable inflow of revenue, which is invaluable in a sector characterised by rapid technological shifts and fierce competition.
The predictable financial foundation afforded by this agreement will enable Oracle to further invest in innovation and infrastructure development without the uncertainties typically associated with emerging technology sectors.
Strategically, Oracle’s role in this initiative affords the company a pivotal position within the AI sector, particularly as OpenAI seeks to diversify its infrastructure providers beyond its existing partnership with Microsoft.
Facilitating AI innovation
This diversification is critical for OpenAI’s operational resilience and growth, and Oracle’s involvement signals its emergence as a key player in AI infrastructure provisioning. This positioning can potentially catalyse further collaborations and innovations, fortifying Oracle’s influence in the AI ecosystem.
In addition to the US-based Stargate data centre, Oracle’s expanding footprint in global markets is exemplified by its participation in similar projects abroad.
The planned AI data centre in the United Arab Emirates (UAE), slated to commence operations in 2026, will incorporate approximately 100,000 of Nvidia’s advanced GB300 chips, marking a significant international expansion.
The development is part of a broader agreement brokered at the governmental level, reflecting the strategic importance of AI data infrastructure on a global scale.
The UAE’s Stargate project will not only bolster AI capabilities within the region but also showcase Oracle’s ability to operate and collaborate on large-scale international initiatives.
This UAE-based project, supported by US and international firms including OpenAI, Oracle, Nvidia, Cisco Systems, and SoftBank Group, is poised to become one of the largest AI data centre platforms outside the United States.
Leveraging Nvidia’s most advanced AI server technologies, the Stargate UAE initiative aims to empower local government and commercial entities with access to cutting-edge AI models, further underscoring Oracle’s commitment to facilitating AI innovation worldwide.