Oracle has announced a $30 billion per year, multi-year, landmark contract with OpenAI. This agreement as it now stands will have OpenAI leasing the entire output of their own 4.5 GW data-center data power for their “Project Stargate.” Together, this pact forms the biggest AI cloud contract in the globe. It further positions Oracle at the head of the hyper-competitive AI infrastructure land grab.
The agreement will fuel OpenAI’s future projects, most notably in powering its upcoming GPT-5 model. This joint effort highlights the growing need for cutting-edge computing resources to train more complex AI models.
While this is a huge step forward, we know that the rest of the AI space has seen some rocky developments lately. Recent data from Artemis Intelligence has found the rapidly growing AI sector, seventh of 24 sectors tracked by Artemis. This ranking is indicative of a significant weekly drop in fully diluted market cap (FDMC). The majority of AI tokens dropped, with a few of the biggest losers dropping more than 15% on the day.
Some AI-related cryptocurrencies bucked the trend. SKYAI (SKYAI), which recently gained 44.7% as speculation grew that the blockchain would offer a major product update on July 8. SUPRA (SUPRA) had a great week, adding 16.5% - even withstanding the tide of supply inflation. Pythia (PYTHIA) was up 13.5% and Delysium (AGI) 11.5%. Homegrown Story (IP) ticked up 6.3% positive bump. This increase followed closely after they revealed the winners from their first buildathon and launched an innovative Share to Earn rewards program.
Bittensor (TAO) saw a minor decline, dropping under $325 after a 2.4% decrease. Virtuals Protocol (VIRTUAL) was down just 0.2%.
At the time of writing, the Crypto Fear and Greed Index is at 52 which corresponds to a neutral sentiment in the crypto market. Market participants are closely watching the sector, especially with Congress set to host its inaugural AI-Crypto Strategy Exchange on July 8. This event may provide further clarity on the regulatory landscape and future direction of the intersection between AI and cryptocurrency.
