Here’s a new price tag for the generative AI boom’s demand for energy and computing power in data centers: $300 billion. That’s how much Chatgpt maker Openai has reportedly committed to spending with Oracle over five years to build on its early success.
The deal, which would be one of the largest cloud computing agreements, was reported by both The Wall Street Journal and The New York Times on Wednesday.
The deal with Oracle would involve the delivery of 4.5 gigawatts of energy capacity, which the magazine said is roughly equivalent to two Hoover Dams or the amount used by 4 million homes. The deal would take effect in 2027, the reports said.
Openai did not respond to our request for comment. Oracle declined to comment.
According to research reports, the number of data centers in the US will nearly double from 2021 to 2024, and the demand for more data centers will grow by 9% per year through 2030. These facilities are expected to consume twice as much electricity by 2035 as they do today.
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Previously, Openai relied solely on Microsoft Azure, but has begun to diversify its cloud portfolio.
Watch this: The hidden impact of the AI data center boom
In January, Openai announced the formation of the Stargate Project , a new company that would invest $500 billion over four years to build AI infrastructure — that is, data centers — with partners including Oracle, Microsoft, Nvidia, and SoftBank. In July, Openai and Oracle announced an agreement to develop 4.5 gigawatts of data center capacity for Stargate, exceeding the 10 gigawatts promised in the January announcement.
The Stargate facility is being built in a thriving location in Abilene, Texas.
Chatgpt is the world’s most used chatbot, in intense competition with Google’s Gemini, Anthropic’s Claude, and Matlexity’s namesake software.
The rapid growth of generative AI products and services has led Openai CEO Sam Altman to worry that we are in an AI bubble.
