AI Agenda

Tariffs Trouble Oracle

The construction site of the Docklands Data Centre Campus where Microsoft was negotiating to lease space. Photo by Getty.
By
Anissa Gardizy

Before we get to tariffs, we wanted to make sure you saw Stephanie and Jessica’s scoop on OpenAI discussing acquiring a startup created by OpenAI CEO Sam Altman and ex-iPhone designer Jony Ive to develop a personal artificial intelligence device. 

Although Altman isn’t technically classified as a cofounder of the startup, io Products, the potential deal immediately drew comparisons with Elon Musk’s xAI buying Elon Musk’s X.

On to the news…

President Donald Trump’s tariffs have injected uncertainty into what has been a fast-growing industry of building data centers for artificial intelligence. A potential 30% increase in the cost of servers, steel and other equipment for new facilities means that data center developers and their AI customers might have to adjust course—unless Trump gives them a special carve out from the tariffs.

Among the AI data center developers worried about tariffs is Oracle, we reported this morning. Known for database software, Oracle has maneuvered its way into the middle of the AI data center boom and is now dealing with the rising costs and risks of working for OpenAI.