That massive Stargate venture between Open AI, Oracle, and SoftBank now reportedly being scaled back.

That comes as Open AI and Oracle announced their own data center expansion plans without SoftBank,

set to develop 4.5 gigawatts of capacity.

Our Christina Parts Nevelos is digging into the Oracle upside in today's tech check.

Hey, Christina.

Hi, Carl.

Well, like you said, even as SoftBank and Open AI really scale back, their ambitious multi-gigawatt

project or builds under the Stargate banner, Oracle does stand to benefit.

Open AI quietly struck a separate $30 billion per year deal with Oracle to host its AI workloads.

Effectively positioning Oracle as the

fallback of Stargate fails to deliver on its original $500 billion vision. That said, CEO Sam Altman

insisted this morning that opening eyes still plans to, quote, significantly expand the ambitions of

Stargate beyond that target, so kind of negating with the Wall Street Journal was writing,

but investors weren't really pricing in any meaningful Stargate CAP-X in 2025 or 2026 anyways,

because 500 billion takes a long time to build out.

Morgan Stanley notes the situation sounds worse than it is since OpenEI has already rerouted demand to side deals

with Oracle, Google Cloud, and Corrieve. And that shift is only really accelerating. This morning,

opening I and Oracle announced a major expansion, another, like you mentioned Carl, 4.5 gigawatts

of data center capacity, which if you have no idea like myself what that really means,

it means it could power at least 3 million homes i've even seen the number at four million

the companies say that build out won't really count will count i should say

towards that white house is pledged to develop 10 gigawatts of AI infrastructure in

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