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OpenAI inks deal for massive amount of AI computing power from Oracle’s US data centres

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OpenAI has agreed to rent a massive amount of computing power from Oracle’s data centres as part of its Stargate initiative, underscoring the intense requirements for cutting-edge artificial intelligence products.

The AI company will rent additional capacity from Oracle totalling about 4.5GW of data centre power in the United States, according to people familiar with the work.

That is an unprecedented sum of energy that could power millions of American homes. A gigawatt is akin to the capacity from one nuclear reactor and can provide electricity to roughly 750,000 houses.

Stargate – OpenAI’s project to buy computing power from Oracle for AI products – was first announced in January at the White House. So far, Oracle has developed a massive data centre in Abilene, Texas, for OpenAI alongside development partner Crusoe. 

To meet the additional demand from OpenAI, Oracle will develop multiple data centres across the US with partners, the people said.

Sites in states including Texas, Michigan, Wisconsin and Wyoming are under consideration, in addition to expanding the Abilene site from a current power capacity of 1.2GW to about 2GW, they said.

OpenAI is also considering sites in New Mexico, Georgia, Ohio and Pennsylvania, one of the people said.

These new projects will be part of Stargate, and details of the plans may still change, according to a person familiar with the plans. OpenAI and Crusoe declined to comment on the plans. Oracle did not return a request for comment.

Oracle shares gained as much as 3.9 per cent to a record high on July 2, following the news. The stock has jumped 36 per cent in 2025, fuelled by investor enthusiasm in its cloud business.

Earlier this week, Oracle announced that it had signed a single cloud deal worth US$30 billion (S$38 billion) in annual revenue beginning in fiscal 2028 without naming the customer.

This Stargate agreement makes up at least part of that disclosed contract, according to one of the people. 

Oracle, known for its database software, has gained traction in the market for renting out computing power and storage over the internet, in part by targeting clients focused on AI work.

This has led to a jump in revenue and expenses.

The US$30 billion deal is more than the current size of its entire cloud infrastructure business.

OpenAI said in May it was helping develop a Stargate project in the United Arab Emirates with Oracle, Crusoe, AI chipmaker Nvidia, Cisco Systems and G42, an AI company backed by the country’s sovereign wealth fund. BLOOMBERG



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Three ways you can make AI generate business leads for you

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For quite a while now, people within the business community have been talking about how AI continues to improve task efficiency and streamline operations, but few are truly exploring how this new era is affecting new business lead generation.

Since opening Agent99’s doors 18 years ago, part of my new business strategy has simply been to ask people how they found us. The majority of our leads come through referrals, followed by Google. However, just last week, I was on two new business calls and when I asked both prospects how they came across Agent99, they gave the same surprising response: “by asking ChatGPT”.

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Where consumers and clients once relied on Google for recommendations, be it agencies, restaurants, dry cleaners, or anything in between, that’s no longer the default.

Today, people are entering these same queries into AI tools and expecting real-time, curated answers based on a mix of web data, reviews, and sentiment. And this shift has caught many business owners off guard. A high Google ranking no longer guarantees your business will be visible or recommended through AI platforms. All that work on your SEO strategy? It’s no longer the only game in town.

This was a light bulb moment for me as a business owner. If you’re not thinking about how you rank on AI platforms and prioritising this, you’re losing new business opportunities.

When I took a deeper look at why we were ranking so well on ChatGPT, and how this new kind of ‘search engine’ prioritises content, I realised (after some thorough research) that it’s because we’ve consistently focussed on our own PR (ie third party credible endorsement), winning awards, garnering reviews from our clients, and reporting on our marketing campaigns on our own website blog and social pages. This is what AI platforms prioritise when making recommendations. 

So, if you’ve noticed a dip in leads lately or you simply want to boost your company’s visibility in the AI space, here are three strategies I strongly recommend. 

Make your SEO plan AI-friendly

It’s no longer enough to optimise your company website for Google alone. Instead of short, Boolean-style search queries, people are now asking long-form, conversational questions. And in response, tools like ChatGPT are generating concise, curated answers drawn from a wide range of sources — with a clear preference for natural, human-sounding language.

It might seem ironic that AI prefers human content, but it’s the new reality.

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To match this, we recommend rewriting key pages on your website, starting with your ‘About’, ‘Services’ and ‘Home’ pages, using language that mirrors how real people would ask for your services in everyday conversation.

For example, instead of writing: “We deliver integrated management solutions,” try: “We help Australian businesses develop management strategies that support sustainable growth”.

If relevant, start a blog that directly answers the kinds of questions people might be asking ChatGPT, and think carefully about how they’re asking them. Once you’ve mapped out your content strategy, commit to publishing consistently. AI platforms favour businesses that post regularly and demonstrate long-term authority in their field.

Prioritise earned media and content

AI tools place more weight on what others say about your business than what you say about yourself. So, while your website content is important, the next priority is securing earned media coverage. This includes article mentions in credible publications and thought leadership content in niche outlets relevant to your industry.

While the media landscape has evolved, organic coverage on high-authority platforms still carries serious influence. That includes local business media, trade publications, and long-form podcasts — especially those with strong digital footprints. A single mention in a well-respected outlet often holds more weight than a dozen paid ads in the eyes of AI.

You should also be submitting your business for awards, rankings, and “Best of” lists. Third-party recognition like “Top PR Agencies in Australia” or “Best Accountants in Melbourne” dramatically increases your chances of being recommended by AI tools for those search terms.

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Lastly, make sure you’re actively collecting client testimonials and online reviews. Reach out to past and current clients and ask for a testimonial you can publish. Genuine, positive sentiment from others boosts your ranking and trust level within AI results.

Show up where conversations are happening

A lesser-known — but highly effective — way to improve your AI visibility is by showing up where your audience is already talking. Think Reddit, Quora, LinkedIn comments, Facebook groups, and even the comment sections of popular blogs or YouTube videos. AI tools are constantly crawling and learning from these conversations, and businesses that participate meaningfully often see a lift in visibility.

Start by choosing two or three platforms where your target audience is most active. If you’re B2B, this might be LinkedIn or industry forums. If you’re more consumer-facing, Reddit, TikTok, or Facebook might be the place. Jump in, answer questions, share your perspective, and most importantly, offer value.

When your brand is mentioned organically or involved in high-engagement threads, it sends strong signals to AI tools. Over time, this can help position your business as a credible authority in your space.

Also, respond to users who tag or mention your brand on social platforms. Engaging with user-generated content builds trust, encourages loyalty, and creates digital breadcrumbs that prove your relevance and responsiveness — two factors that AI prioritises more than ever.

AI isn’t just a trend; it’s a fundamental shift in how consumers discover and choose businesses.

Rather than fearing this new giant in the room, lean in. By understanding how AI platforms work and proactively shaping your digital footprint, you’ll improve your ability to attract quality leads, earn recommendations, and strengthen your brand presence in what’s becoming an increasingly competitive and complex market.



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Maternity brand Seraphine worn by Kate enters administration

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The maternity fashion retailer Seraphine, whose clothes were worn by the Princess of Wales during her three pregnancies, has ceased trading and entered administration.

Consultancy firm Interpath confirmed to the BBC on Monday that it had been appointed as administrators by the company and that the “majority” of its 95 staff had been made redundant.

It said the brand had experienced “trading challenges” in recent times with sales being hit by “fragile consumer confidence”.

The fashion retailer was founded in 2002, but perhaps hit its peak when Catherine wore its maternity clothes on several occasions, leading to items quickly selling out.

Prior to the confirmation that administrators had been appointed, which was first reported by the Financial Times, Seraphine’s website was offering discounts on items as big as 60%. Its site now appears to be inaccessible to shoppers.

The main job of administration is to save the company, and administrators will try to rescue it by selling it, or parts of it. If that is not possible it will be closed down and all its saleable assets sold.

Will Wright, UK chief executive of Interpath, said economic challenges such as “rising costs and brittle consumer confidence” had proved “too challenging to overcome” for Seraphine.

Interpath said options are now being explored for the business and its assets, including the Seraphine brand.

The retailer’s flagship store was in Kensington High Street, London, but other well-known shops, such as John Lewis and Next, also stocked its goods.

The rise in popularity of Seraphine, driven in part by Royalty wearing its clothes, led to the company listing on the London Stock Exchange in 2021, before being taking back into private ownership in 2023.

Interpath said in April this year, the company “relaunched its brand identity, with a renewed focus on form, function and fit”.

“However, with pressure on cashflow continuing to mount, the directors of the business sought to undertake an accelerated review of their investment options, including exploring options for sale and refinance,” a statement said.

“Sadly, with no solvent options available, the directors then took the difficult decision to file for the appointment of administrators.”

Staff made redundant as a result of the company’s downfall are to be supported making claims to the redundancy payments service, Interpath added.



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Can AI run a successful vending business? An AI startup tested it out

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Because AI isn’t (yet) able to physically restock the machine, the AI model could email company employees who handled such tasks. Beyond that, however, the AI model, dubbed Claudius for the experiment, was tasked with many of the responsibilities of a traditional operator, including selecting and maintaining inventory, setting prices and maximizing profit.

The upshot: “If Anthropic were deciding today to expand into the in-office vending market, we would not hire Claudius,” the company wrote in its blog.

The experiment showed that while the AI model was effective at tasks such as identifying suppliers, adapting to users’ requests and “jailbreak resistance,” as Anthropic employees tried to trick Claudius into stock sensitive items, Claudius failed as a convenience service operator because it ignored profitable opportunities, instructed customers to make payments at a Venmo address it had imagined (instead of the one created), sold products at a loss, offered excessive discounts and mismanaged inventory.

Although version one of Project Vend wasn’t successful at the bottom line, Anthropic predicts that AI middle managers will come to pass. “It’s worth remembering that the AI won’t have to be perfect to be adopted; it will just have to be competitive with human performance at a lower cost in some cases,” the company wrote in its blog.

Read the full story here.



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