Latest news with #Oracle
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Is Nvidia's Deal With OpenAI a Game Changer?
A number of companies have made commitments to invest in domestic infrastructure over the next several years. Chief among these initiatives is a joint venture among Oracle, SoftBank, and OpenAI. Known as Stargate, this consortium of technology leaders plans to invest $500 billion into artificial intelligence (AI) infrastructure in the U.S. Just last week, investors finally got an update on how Stargate is progressing. In perhaps a shock to absolutely no one, semiconductor powerhouse Nvidia (NASDAQ: NVDA) is involved with a new data center for OpenAI. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Let's dig into this deal and assess why it could be a game changer for Nvidia. How are Nvidia and OpenAI working together? As a refresher, OpenAI burst onto the AI scene a few years ago following a multibillion-dollar investment from Microsoft. While OpenAI's services, chief among them ChatGPT, have become heavily integrated throughout Microsoft's ecosystem, both companies have been seeking opportunities to branch out over the last year or so. For OpenAI, the company has reached a point whereby striking partnerships with other technology companies is essential -- hence the creation of Stargate. The reason for this is that as demand for ChatGPT grows, so does the need for compute power (i.e., more data center infrastructure). However, Microsoft simply cannot be the sole bridge to finance OpenAI's needs. Per recent reports, Oracle is planning to purchase an estimated 400,000 graphics processing units (GPU) from Nvidia for OpenAI's new data center in Texas. Of note, the GPUs are Nvidia's new Blackwell architecture and could cost Oracle up to $40 billion. Oracle will subsequently be leasing these chips to OpenAI as part of the deal structure, adding even more tailwinds to its fast-growing infrastructure-as-a-service (IaaS) division. Why is this deal important? I see two primary reasons why this deal is a game changer for Nvidia. First, global management consulting firm McKinsey & Company recently published a report in which it estimates nearly $7 trillion will be spent on AI infrastructure over the next five years. Within this grand total, McKinsey believes that hardware providers will be the biggest beneficiaries of rising AI capital expenditure (capex). Even though Stargate is still in its infancy, there are signs that hardware suppliers such as Nvidia are already benefiting from increased AI infrastructure budgets. Reports suggest that OpenAI is considering building more data centers beyond Texas. Given Nvidia's selection to lead this initial buildout, I'm optimistic the company could continue winning more contracts from the Stargate project -- hence, this could be the beginning of a long-term relationship between OpenAI and Nvidia. On top of that, it was reported earlier this year that OpenAI was collaborating with Taiwan Semiconductor Manufacturing to develop its own custom chipsets. While OpenAI may indeed eventually pursue custom silicon, it appears for now that the company's compute power relies heavily on data centers outfitted with Nvidia's GPUs. To me, this signals that demand for Blackwell continues to remain robust. Moreover, Nvidia's selection as a primary chip supplier for one of Stargate's initial projects underscores just how critical the company's hardware is for ongoing AI development. Should you buy Nvidia stock right now? For the first time in almost three years, Nvidia stock has actually taken a breather -- and a prolonged one at that. NVDA PE Ratio (Forward) data by YCharts Investors have been selling Nvidia stock throughout most of 2025, thanks in large part to uncertainty around new tariff policies and how they may impact Nvidia's ability to conduct business in China. Nevertheless, the company's forward price to earnings (P/E) multiple of 32.6 shows some clear valuation compression in the red-hot chip stock. I see the deal with OpenAI as a potential proxy for what's to come for Nvidia as Stargate and other AI infrastructure deals come to fruition. To me, the company's long-run prospects look as strong as ever -- despite some headwinds in key Asian markets for now. Investors with a long-run time horizon may want to consider scooping up shares of Nvidia right now, as the stock could witness a sharp rebound if it continues to win over more high-profile deals with AI's biggest developers. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
7 hours ago
- Business
- Yahoo
OpenAI Secures $11.6B For Texas Data Center Expansion, Reducing Microsoft Dependence
Crusoe secures $11.6 billion to build OpenAI's massive 1.2 gigawatt Abilene, Texas data center, part of the $500 billion Project Stargate. Oracle has signed a 15-year lease to anchor the Abilene data center. Crusoe's evolution from gas-powered crypto rigs to liquid-cooled AI supercenters captures the arc of next-gen computing. AI infrastructure startup Crusoe Energy Systems has secured $11.6 billion in funding commitments to build a massive data center in Abilene, Texas, designed to support OpenAI's expanding computing needs. The new funding round, backed by Blue Owl Capital's Real Assets platform and Primary Digital Infrastructure, brings total capital raised for the project to $15 billion, The Wall Street Journal reported. According to Crusoe, the facility marks a critical step in OpenAI's infrastructure strategy. Initially planned as a two-building campus, the project now spans eight buildings. It is expected to deliver 1.2 gigawatts of power capacity, making it one of the largest AI training hubs globally. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — According to the company, construction began last June, with the first two buildings—totaling 200 megawatts—expected to be energized in the first half of this year. A second phase, launched in March, will add six more buildings and is expected to be completed by mid-2026. The expansion comes amid growing demand for compute capacity as OpenAI develops increasingly advanced artificial intelligence models. Oracle Corp. (NYSE:ORCL) has signed a 15-year lease to occupy a significant portion of the Abilene campus, according to the Journal. While Microsoft Corp. (NASDAQ:MSFT) remains OpenAI's largest investor and retains exclusive application programming interface licensing rights, its role in the Abilene project is limited to that of a technology partner, without direct equity involvement. OpenAI has increasingly sought to diversify its infrastructure partnerships, citing concerns over Microsoft's ability to scale fast enough to meet its compute needs, the Journal reported. Meanwhile, JPMorgan Chase & Co. (NYSE:JPM) has committed over $7 billion to the data center project, building on a previous $2.3 billion investment, according to The Information. Trending: Invest where it hurts — and help millions heal:. The Abilene project is part of 'Project Stargate,' a $500 billion global AI infrastructure initiative launched in January by OpenAI, Oracle, SoftBank, and United Arab Emirates-based MGX, Forbes reported. The project aims to build a vast network of AI data centers over the next four years to support rapid model development and increase U.S. leadership in artificial intelligence. According to Crusoe, the buildings planned in Abilene are designed for industry-scale performance, with each capable of running up to 50,000 GB200 NVL72 chips from Nvidia Corp. (NASDAQ:NVDA) on a unified network fabric. Beyond scale, the Abilene campus is also a model for energy-conscious AI infrastructure. It incorporates direct-to-chip liquid cooling to manage thermal loads and partners with Lancium's Clean Campus program to integrate renewable energy sources, Crusoe said. Crusoe expects the project to create over 5,000 jobs and generate more than $1 billion in local economic impact over the next two in 2018, Denver-based Crusoe began as a company converting stranded natural gas into energy for crypto mining. In recent years, it has repositioned itself as a vertically integrated AI infrastructure provider, with a sharp focus on sustainable, high-density compute environments, according to Crunchbase. The company raised $600 million in Series D funding led by Founders Fund, with participation from Fidelity and Nvidia, bringing its valuation to $2.8 billion. The Abilene project represents Crusoe's most ambitious venture to date and positions it at the center of the rapidly expanding AI infrastructure race. Read Next: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article OpenAI Secures $11.6B For Texas Data Center Expansion, Reducing Microsoft Dependence originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
11 hours ago
- Entertainment
- The Star
"Chinese Bridge" competitions held for primary, secondary school students in Nepal
KATHMANDU, May 30 (Xinhua) -- The final rounds of "Chinese Bridge" Chinese proficiency competitions for primary- and secondary-school students in Nepal were held on Friday in Lalitpur, a city in the Kathmandu Valley. Ten finalists competing in the fifth "Chinese Bridge" Chinese show for foreign primary school students shared in speeches their rich experiences and thoughts about learning the Chinese language. They demonstrated their Chinese cultural talents through songs, dances, paper-cutting, calligraphy and Wushu rhythmic exercises. Another ten finalists competed on the same stage but in the 18th "Chinese Bridge" Chinese proficiency competition for foreign secondary school students. While most speeches were themed on "Fly High With Chinese," one touched upon Oracle bone inscriptions, or Jiaguwen, an ancient Chinese language named for its inscriptions on tortoise shells and animal bones, while the other displayed a clapper talk show. In addition to talent shows featuring songs, dances, kung fu, sword-dance, paper-cutting, Chinese tongue twister and playing of bamboo flute, the secondary-school contestants had an extra contest over their knowledge of Chinese culture. Ashlesha Adhikari and Aarogya Niraula outcompeted the others in the competitions and shall travel to China for the global finals for primary- and secondary-school students, respectively.
Finextra
11 hours ago
- Business
- Finextra
Modern Banks Must Adapt to be More 'Phygital'
Describing the evolution of modern banking, Sovan Shatpathy, SVP, Product Management & Development, Oracle Financial Services joined the FinextraTV virtual studio to explain how banks can thrive. As well as contextualising the current landscape and offering insights into the way that banks are now focussing more intently on the customer journey, Shatpathy asserts that all banks cannot be physical or digital, they must be 'phygital'.
Yahoo
15 hours ago
- Business
- Yahoo
Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June
Oracle stock has been recovering nicely in recent weeks from its 2025 slump, and it could receive another shot in the arm from the release of its quarterly results in mid-June. The tech giant's growth is on track to accelerate in the current and upcoming fiscal years. Oracle's growth potential and valuation indicate that it could make investors richer over the next couple of years. 10 stocks we like better than Oracle › Following a difficult start to the year, Oracle (NYSE: ORCL) stock has been resurgent in recent weeks, rising nearly 35% since April 21 amid the broader recovery in technology stocks. Over the same period, the Nasdaq Composite index recorded an 22% gain. The database and cloud infrastructure provider is expected to table its fiscal 2025 fourth-quarter results in mid-June. That report could give its recent rally a nice boost. Oracle stock took a hit earlier this year after its fiscal Q3 results and fiscal Q4 guidance missed analysts' expectations. The company is expecting its top line to increase by 9% in fiscal Q4. Its overall revenue for fiscal 2025 is expected to grow by 8% to just over $57 billion. However, investors can expect a significant acceleration in Oracle's growth beginning in fiscal 2026 thanks to the terrific demand for the company's cloud infrastructure, which is being used by customers for both artificial intelligence (AI) training and inference. Oracle claims that its cloud infrastructure is faster and cheaper than rivals, and the high-speed networking capability of that infrastructure makes the company's platform ideal for tackling AI workloads. This explains why the demand for Oracle Cloud Infrastructure (OCI) is "dramatically" exceeding supply, according to CEO Safra Catz. Although the company has just a 3% market share in the global cloud market, the company is touting its 51% growth in OCI revenue in fiscal Q3, which Catz points out was "a much higher growth rate than any of our hyperscaler competitors." As a result, the company has been investing aggressively to boost its cloud infrastructure capacity so that it can meet the increasing demand for AI workloads from existing customers, while also catering to the new customers that are migrating to its platform in hopes of increasing its market share. In March, management said it expected Oracle's capital expenditures for fiscal 2025 would be about $16 billion, more than double its capex in fiscal 2024. That massive increase is justified by the rate at which Oracle is signing new cloud contracts. The company's remaining performance obligation -- the total value of contracts it has signed, but has yet to fulfill -- increased an impressive 63% year over year to $130 billion at the end of Q3. What's worth noting is that Oracle's remaining performance obligation increased by 53% and 50%, respectively, in the first two quarters of the fiscal year. So, the adoption of its cloud platform increased at a solid pace, and its massive revenue pipeline justifies the aggressive capacity investments it's making. The good part is that Oracle's remaining performance obligation doesn't yet include any contracts from the Stargate project, the $500 billion AI infrastructure venture led by OpenAI and SoftBank. In March, Oracle Chairman Larry Ellison said that spending on the Stargate project would boost the company's remaining performance obligation even higher in the next few quarters. There is a good chance that the contracts Ellison was predicting could start materializing when the company releases its next set of results next month. The company reportedly placed orders for $40 billion worth of Nvidia's AI graphics cards for a Stargate data center in Texas. Additionally, Oracle is set to develop an AI data center in the United Arab Emirates as part of the Stargate project. Given that OpenAI is considering the deployment of AI data centers in 16 U.S. states under Stargate, and that Oracle is a "key initial technology partner" in the project, it won't be surprising to see Oracle's revenue pipeline improving further. All of this helps explain why Oracle has forecast that its revenue will increase by 15% in the new fiscal year, followed by an increase of 20% in the 2027 fiscal year. Moreover, the company believes that the component delays slowing down its cloud capacity expansion will ease in the current quarter, which could allow it to deliver better-than-expected guidance and send the stock even higher. Though Oracle stock rallied in recent weeks, it is still trading at an attractive 23 times forward earnings. That's lower than the tech-heavy Nasdaq-100 index's forward earnings multiple of 27.5. We have already seen that Oracle is expecting much stronger top-line growth over the next couple of fiscal years. That's expected to translate into stronger earnings growth as well compared to the 8% projected increase in its bottom line in fiscal 2025 to $6 per share. If Oracle's annual earnings do reach $8.18 per share after a couple of years and it trades in line with the Nasdaq-100 index's current forward earnings multiple at that time, its stock price could hit $225. That would be a 39% jump from today's levels. However, this AI stock could end up delivering much stronger gains since it has the potential for even stronger earnings growth, which could lead the market to reward it with a richer valuation. That's why it may be a good idea to invest in Oracle stock now, while it's still trading at attractive levels. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Oracle. The Motley Fool has a disclosure policy. Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June was originally published by The Motley Fool
