OpenAI and Oracle Abandon Texas Data Center Expansion Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy ORCL?
Source: seekingalpha
- Expansion Plans Abandoned: OpenAI and Oracle have decided against expanding their Texas data center from 1.2 GW to 2 GW due to financing issues and changes in demand forecasts, which may impact their competitive edge in the AI sector.
- Meta's Involvement: Meta Platforms is now considering leasing the planned expansion, originally developed by Crusoe, indicating its proactive strategy in enhancing data center capabilities, potentially strengthening its AI infrastructure.
- Strengthened Partnerships: Oracle has stated that its collaboration with Crusoe is progressing well, aiming to deliver one of the world's largest AI factories in Abilene, highlighting its ongoing investment and strategic significance in infrastructure development.
- Technological Collaboration: Last month, Meta signed a multi-year agreement with AMD to deploy up to 6 GW of AMD Instinct chips, further advancing its AI infrastructure ambitions and showcasing its aspirations within the industry.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 154.790
Low
180.00
Averages
309.59
High
400.00
Current: 154.790
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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