OpenAI, Oracle rethink Texas expansion, though Stargate buildout continues

What to look for in Oracle’s Q3 earnings

Oracle will release third-quarter earnings Tuesday, amid confusion over an OpenAI data center deal, looming layoffs, and fears of runaway capex....

Oracle is building yesterday’s data centers with tomorrow’s debt

The OpenAI deal fallout exposes the fundamental danger of being the most leveraged player in a market where the chip cycle moves faster than the concrete dries.

Oracle Axing Huge Number of Jobs as AI Crisis Intensifies

AI companies are spending vast sums of money on data centers — infrastructure expenditures that come with some hair-raising price tags. As Bloomberg reported last week, Larry Ellison’s Oracle may have spread itself a little too thin. The company is planning to cut thousands of jobs due to a “cash crunch” resulting from a massive AI data center expansion effort. Inside sources told the outlet that at least some of the cut jobs will affect categor…

OpenAI, Oracle rethink Texas expansion, though Stargate buildout continues

OpenAI and Oracle's decision to drop a planned expansion at their flagship Texas AI campus highlights the shifting economics and technology cycles of large-scale AI infrastructure. The move suggests developers are becoming more flexible about where and when to deploy compute capacity rather than abandoning megaprojects.

OpenAI Is Walking Away From Expanding Its Stargate Data Center With Oracle

OpenAI is reportedly backing away from expanding its AI data center partnership with Oracle because newer generations of Nvidia GPUs may arrive before the facility is even operational. CNBC reports: Artificial intelligence chips are getting upgraded more quickly than data centers can be built, a ma...

Stargate’s Flagship Data Center Is Dead. What That Tells Us About the AI Infrastructure Bubble.

The largest single AI data center ever announced in the United States won’t be built. Oracle and OpenAI have scrapped plans for a facility in Abilene, Texas, that would have consumed over a gigawatt of power and cost an estimated $30 billion or more. The project, originally the crown jewel of the Stargate joint venture announced with enormous fanfare at the White House in January, has been quietly downsized into something far more modest. This i…