OpenAI Invests $850 Billion in Data Centers to Drive AI Infrastructure Revolution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Infrastructure Investment: OpenAI's Stargate project is set to cost approximately $850 billion, encompassing multiple data centers that will rapidly expand AI infrastructure, with over 1GW of power capacity expected to come online by 2026, enough to power 750,000 homes, significantly enhancing computational capabilities.
- Partnerships: OpenAI has secured partnerships totaling around $1.4 trillion with companies like Nvidia and Oracle, ensuring a stable supply of future computing needs and further solidifying its leadership position in the AI market.
- Debt Financing: In the push for AI infrastructure, OpenAI and other tech giants have added $121 billion in new debt this year, with projections of up to $1.5 trillion in additional borrowing in the coming years, reflecting strong market demand for AI technology and potential risks.
- Market Outlook: Analysts predict that global AI infrastructure spending will reach $602 billion by 2026, a 36% increase from 2023, indicating the rapid growth potential of the AI industry and the enormous demand for capital.
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 352.52 USD with a low forecast of 175.00 USD and a high forecast of 415.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
25 Buy
11 Hold
1 Sell
Moderate Buy
Current: 197.210
Low
175.00
Averages
352.52
High
415.00
Current: 197.210
Low
175.00
Averages
352.52
High
415.00
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.
