How OpenAI Kills Oracle

5 hours ago

Stargate, announced in January 2025 by Oracle, SoftBank, and OpenAI, was a $500 billion AI infrastructure project promising over 100,000 jobs but has not been formally established.
Only the Abilene, Texas data center is partially operational, with delays and scaled-down construction; other sites remain largely undeveloped.
Oracle is financing the project through massive off-balance-sheet debt, risking its financial health for a single tenant, OpenAI, which faces huge losses and may not afford the compute.
The total cost for Oracle's 7.1GW data center capacity is estimated at $340 billion, but OpenAI has excessive compute commitments with multiple providers totaling over $850 billion through 2030.
Stargate is behind schedule, with Abilene unlikely to finish before April 2027, and obsolete GPUs by completion could render the investment non-viable, potentially leading to Oracle's collapse.

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