OpenAI has said that they are building five new Stardate data centers with Oracle and SoftBank. This is massive from a company that is already doing so much with the Stardate project. Just on Tuesday, they announced they're going to build all of these. They're going to be in the United States, and I know they've mentioned they're going to do other Stardate projects.
These five are just still in the United States. The new data centers are going to have a planned capacity of about 7 gigawatts. This is absolutely massive. That's enough energy to power more than 5 million homes.
So today on the podcast, we're going to be breaking down everything that's going into this project, where they're getting the money from, the impact this has had on Oracle, how NVIDIA is helping to fund this, and a lot more. But before we get into that, I wanted to mention, if you want to build AI tools without knowing how to code, I'd love for you to check out mystartup AIbox.ai. We've just launched a beta of our builder, which is a platform where you can describe a tool you want to build, whether that's a newsletter generator, whether that's some sort of tool that you use internally in your organization. You know how to use AI to automate your processes.
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You can access that as well on the AIbox playground. So go check it out AIbox.ai, but let's get into the rest of the episodes there. So the new sites for the current project, or the five new that just got announced, are going to all be in interesting places. So there's Chacroford, Texas, Dona Ana, New Mexico.
There's one in the Midwest, and there's two others that are being built with SoftBank in Ohio and Milam County, Texas. So we're seeing a lot of like New Mexico, Texas, Ohio, and some in the Midwest, but kind of all over the place, not a lot on the East or West Coast, specifically, which is interesting. And these new projects are part of this massive infrastructure build-out that they're doing. And what's interesting is all of this is coming as a lot of people are asking, like, how are they going to spend all of this money?
How are they going to raise all the money to fund this, right? Like, OpenAI essentially is becoming a data center creator, which is really interesting. And a lot of this comes back to NVIDIA. So NVIDIA said that they are planning to invest $100 billion in OpenAI, specifically just on Monday they announced this.
And this is all part of the deal for this data center build-out. So basically, it's interesting because up to this point, we've seen that NVIDIA, they invest money into all the big AI startups, 11 labs, anthropocytes. They put money into all the big ones because they know they're going to have to buy their GPUs. And this is interesting because it's moving just from, okay, you need our GPUs to train your models, to, like, we know you need to buy our GPUs to fill up an entire data center or multiple data centers.
So it seems like NVIDIA's investment here just is a gift that keeps on giving, even if these data centers aren't exclusively used for OpenAI, which I think they would be. But, like, they're creating an asset, a data center asset, that's going to be filled with NVIDIA GPUs, so this is a no-brainer for NVIDIA to invest it. Now, the controversy that a lot of people have talked about is the stock implications of a lot of these deals because we have Oracle making a lot of these new deals. Oracle also just, you know, announced that they were signing a $300 billion deal with OpenAI, where OpenAI was going to pay them $300 billion for compute.
And this, of course, was controversial because it wasn't like OpenAI wired in $300 billion. They don't have that much money. They give them a letter of intent that in the next, like, three years or four years, I think, they're going to want to do this deal. So what's interesting to me is that we kind of have this moment where it feels like NVIDIA is giving money to OpenAI to build data centers.
OpenAI is giving money to Oracle to also build them data centers. And Oracle is giving money back to NVIDIA and OpenAI as investors. Like, all these different companies are, it's like a giant circle of everyone is giving each other money or letters of intent, right? So not even money, but, like, hey, I'm putting this down, but I want to buy it.
And when this is happening, the stock price of these companies are going crazy. If you look at Oracle stock price over the last six months, it's up 90%, over 90% in the last six months. Oracle stock absolutely ripped, like, going up 90% in six months is crazy. Coming from $150 to $293, basically, the whole stock has doubled in six months.
And, you know, by the way, this was a small company before. Oracle, the massive corporation, they've been around for a very long time. And so it's, like, basically these deals, these $300 billion LOI deals are boosting Oracle stock up a ton. And then Oracle is able to use this inflated stock price, or I don't know if you'd call it inflated, but this greatly increased stock price to go and invest more money into the GPUs or invest it into these other companies, which is interesting.
So Oracle, because of this, has had a bunch of shakeups. They just announced that two of their presidents are going to, basically, their CEO is moving into a new role. And they have got two new presidents, two co-CEO of the company. Obviously, this thing is growing into an entire beast of its own.
I mean, their stock doubled in the last six months alone. So Madrig joined Oracle in 2014 from AWS, and he was a founding member of Oracle's cloud engineering team. So he's going to be one of the new co-CEOs. And then we also have Mike Silka, who's also going to be a co-CEO.
And Silka has served as president of Oracle's industries division since June. He had a bunch of other different roles in the company. And he actually came to Oracle through an acquisition of Primavera Systems back in 2018. So Saffir Katz, who is currently the CEO and has been since 2014, is going to move into a role as the executive vice chair of Oracle's board director.
So we're seeing this trend where the company is just exploding. And some people say it's dubious, these $300 billion LIs. The company is exploding. Their stock price is doubled.
They're moving the CEO out to new position and putting new CEOs in. It feels like new breath is being breathed into Oracle in an insane new way, where they're basically catching up with what was only, you know, NVIDIA was basically the only company that people had said was going to win as selling, you know, picks and shovels and AI gold rush. And it seems like now we're bringing in other players that are growing rapidly. Oracle, AMD, and a bunch of other players.
So with that, Oracle is now going to be raising $15 billion in corporate bond sales, which is interesting. And also, like, $15 billion in corporate bond sales today versus six months ago is massive. So literally their stock price doubled, so they're able to get a way better valuation on this. You know, they've been known as a cloud infrastructure giant for a very long time, and they're going to be doing this through corporate bond sales, that's according to reports out of Bloomberg.
And this could actually happen this year. This is the second biggest bond sale this year that Oracle will be doing. And this could include up to seven different parts with potential for one of those to be uncommon 40-year bonds, that's according to Bloomberg. So all of this is right after OpenAI signed that massive $300 billion LOI.
When they got that right, so OpenAI was like, all right, here's a $300 billion LOI. Everyone was asking, like, where are they going to get the money to build a compute? Because that's just an LOI. They have to go and build a compute.
But using that LOI, they can now raise these corporate bonds. They have their stock prices up. Like, they have a lot of, all of a sudden, everything explodes. Now they have the tools, because publicly there's a $300 billion LOI.
They now have all the tools they need to go and raise money and actually build this, which is interesting. And also, apparently, they're in talks with Meta for about $20 billion worth of compute as well, which a lot of people are like, oh, it's only $20 billion. Like, that's nothing. You know, OpenAI just did a $300.
Like, $20 billion of compute? This is a massive deal. This should have really been quite positive for the stock. But with everything else going on being so much crazier, it didn't seem to get as many headlines as other things.
So, it seems like everything in data center land is going absolutely crazy. And I just want to bring you back to something I said at the very beginning of this episode, which is that these new data centers are going to be 7 gigawatts. So, that is enough energy to power more than 5 million homes. Like, these data centers are going to be insane.
This is going to be massive. A lot of energy consumption. A lot of people in America, I will say, are complaining that the cost of energy is going up dramatically because of data centers. And so, it's sort of another point of controversy where if you look at certain jurisdictions that are giving these data centers tax breaks or basically incentives to build their data centers to give them cheaper electricity, they're kind of straight into grid.
I believe the current Trump administration has, I don't know if anything has happened here, but they've talked about allowing the new data centers that are being built to also build power plants on site to offset that because basically, like, you know, if OpenAI goes and builds these five new ones that could use the same amount of energy as 5 million homes, pulling that from the grid could be pretty rough. And so, we need more energy production. So, I'm not sure what OpenAI's plan is for that. I sure hope that they're planning on building out their own energy production along with the data centers.
So, it'll definitely be something we'll have to look at. But, yeah, hopefully this isn't something that just completely nukes the entire grid of America. I'm sure that'll happen in some sort of part. But, it's incredible just the scale and the price of a lot of these projects.
So, I'll definitely keep you up to date on all that. And, as always, make sure to check out AIbox.ai to build your own tools with AI and to access the top 40 different AI models in one place for 20 bucks a month, including text, image, audio, and basically everything you need for using Generative AI at work and in your job. Thanks so much for tuning in, and I'll catch you in the next episode.