What’s fueling the surge in AI data center megadeals?

Silicon Valley’s AI arms race escalated as Nvidia weighed up to $100 billion for OpenAI, while OpenAI tapped Oracle and SoftBank to add five “Stargate” data centers, moves that could bring gigawatts of new capacity online. Oracle underpinned the buildout with $18 billion in bonds, signaling Wall Street’s willingness to finance AI infrastructure even as questions linger over returns. OpenAI’s new Pulse feature—an overnight, personalized briefing limited to $200-a-month Pro users—illustrates both the demand for always-on AI services and today’s capacity constraints. The broader bet: that sustained usage and monetization of products like Pulse will justify hundreds of billions in compute outlays. For now, investors and policymakers are watching whether power, supply chains and regulation keep pace with the industry’s ambitions.

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