French bank Paris Bank: Oracle Corporation (ORCL.US) participating in the Stargate project highlights the investment value of large-scale cloud vendors.

Oracle Corporation (ORCL.US) plays a more important role in the Stargate project, further strengthening French Bank of Paris' belief that "hyperscalers" are one of the best channels for investment in the artificial intelligence boom. It is reported that OpenAI plans to lease 4.5 gigawatts of data center capacity from Oracle Corporation for the Stargate project. This includes increasing its capacity at the Abilene data center in Texas from 1.2 gigawatts to 2 gigawatts. This once again demonstrates the importance of hyperscale cloud providers in the era of artificial intelligence. Due to their key role in building artificial intelligence infrastructure, French Bank of Paris rates Microsoft Corporation (MSFT.US), Amazon.com, Inc. (AMZN.US), and Oracle Corporation as "outperform". French Bank of Paris estimates that providing 4.5 gigawatts of data center capacity for the Stargate project could generate annual revenue between 30 billion and 60 billion US dollars, depending on the hourly rental price of each GPU. However, it is currently unclear whether Oracle Corporation will be responsible for all construction funds, or if Stargate's partners will also contribute. The bank estimates that an investment of 180 billion to 225 billion US dollars will be needed to build the 4.5 gigawatts of Stargate capacity. French Bank of Paris analysts wrote in an investor report, "We also note that this agreement may indicate that the Stargate project is taking shape, or that negotiations between Microsoft Corporation and OpenAI are nearing completion. We believe this is an important catalyst for Microsoft Corporation, as investors may start to see OpenAI as an asset rather than a liability (and may embed OpenAI's valuation into Microsoft Corporation's overall valuation). In addition, if Microsoft Corporation continues to provide all reasoning services for OpenAI, the future revenue potential of Azure could also significantly increase. OpenAI's current target is to achieve $125 billion in revenue by 2029."