OpenAI, Oracle Sign $300B Computing Deal, Among Biggest in History(wsj.com)
wsj.com
OpenAI, Oracle Sign $300B Computing Deal, Among Biggest in History
https://www.wsj.com/business/openai-oracle-sign-300-billion-computing-deal-among-biggest-in-history-ff27c8fe
14 comments
I suspect it is exchange of equity for compute credits, because it is not clear where oai would get so much money.
> OpenAI signed a contract with Oracle to purchase $300 billion in computing power over roughly five years
>The deal is one of the largest cloud contracts ever signed
>The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes.
And where is all of this data center capacity going to come from?
>The deal is one of the largest cloud contracts ever signed
>The Oracle contract will require 4.5 gigawatts of power capacity, roughly comparable to the electricity produced by more than two Hoover Dams or the amount consumed by about four million homes.
And where is all of this data center capacity going to come from?
They are building out a new data center in Texas. Bloomberg did a mini documentary a few months ago about it.
https://youtu.be/GhIJs4zbH0o
https://youtu.be/GhIJs4zbH0o
If someone wondering - that's about $675m worth of solar panels
4x if you add the rest of hardware, batteries, labour.
4x if you add the rest of hardware, batteries, labour.
They claim they are gonna overtake gcp, azure, even aws in the next few years while the revenue is not beating the estimate this quarter. The stock popped. Let's see how big the bubble goes
As was said by someone on X, OpenAI doesn't have the money and Oracle doesn't have the GPUs.
I'm not saying the agreement does not makes some sense to both parties but at the end of the day this a highly leveraged operation, the money is not there and will need to be raised by both players. So a lot of financial risk is involved.
Perhaps they can pull this off because after all they are smart people. But it seems like the free money party is open and others will follow suit until somebody drops the ball and then we'll be back in a crash.
I'm not saying the agreement does not makes some sense to both parties but at the end of the day this a highly leveraged operation, the money is not there and will need to be raised by both players. So a lot of financial risk is involved.
Perhaps they can pull this off because after all they are smart people. But it seems like the free money party is open and others will follow suit until somebody drops the ball and then we'll be back in a crash.
The degree to which vibe coding has replaced thoughtful analysis.
AI Winter 2.0 will be glorious.
I guess MS (or Oracle) will finally acquihire them in the next half year