"On the OpenAI side, the agreement was more revealing than the lack of details suggest. For one, the startup's willingness to pay so much for compute provides a measurement of the startup's appetite - even if it's unclear where the electricity to power said compute is coming from or how it will pay for it. Chirag Dekate, a vice president at research firm Gartner, told TechCrunch it's clear why both sides were interested in this deal."
"It makes sense for OpenAI to work with several infrastructure providers, he noted. It also diversifies the company's infrastructure - spreading out risk among several cloud providers - and gives OpenAI a scaling advantage compared to competitors. "OpenAI seems to be putting together one of the most comprehensive global AI supercomputing foundations for extreme scale, inference scaling where appropriate," Dekate said. "This is quite unique. This is probably exemplary of what a model ecosystem should look like.""
OpenAI and Oracle agreed to a surprise $300 billion, five-year cloud computing contract that triggered a sharp rise in Oracle's stock. The payment size indicates OpenAI's large compute appetite and a strategy to diversify infrastructure across multiple cloud providers to spread risk and gain scaling advantages. Analysts note OpenAI is assembling a global AI supercomputing foundation for extreme scale and inference. Oracle maintains core infrastructure capabilities developed over decades and has prior hyperscaler relationships, including providing infrastructure for TikTok's U.S. business. Key operational details, including payment, power sourcing, and exact deployment terms, remain undisclosed.
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