OpenAI and Oracle Expand Stargate Project with Massive 4.5 GW Data Center Deal

OpenAI and partners are building a massive AI data center in Texas

On Tuesday, OpenAI announced a partnership with Oracle to develop 4.5 gigawatts of additional data center capacity for its Stargate AI infrastructure platform in the US. The expansion, which TechCrunch reports is part of a $30 billion per year deal between OpenAI and Oracle, will reportedly bring OpenAI's total Stargate capacity under development to over 5 gigawatts. The data center has taken root in Abilene, Texas, a city of 127,000 located 150 miles west of Fort Worth. The city, which serves as the commercial hub of a 19-county region known as the "Big Country," offers a location with existing tech infrastructure, including Dyess Air Force Base and three universities. Abilene's economy has evolved over time from its agricultural and livestock roots to embrace technology and manufacturing sectors. "We have signed a deal for an additional 4.5 gigawatts of capacity with oracle as part of stargate. easy to throw around numbers, but this is a gigantic infrastructure project," wrote OpenAI CEO Sam Altman on X. "We are planning to significantly expand the ambitions of stargate past the $500 billion commitment we announced in January." The new agreement builds on OpenAI's initial $500 billion commitment announced at the White House in January to invest in 10 gigawatts of AI infrastructure over four years. The company estimates that the 4.5 GW expansion will generate jobs across construction and operations roles, including direct full-time positions, short-term construction work, and indirect manufacturing and service jobs. The 5 gigawatts of total capacity refers to the amount of electrical power these data centers will consume when fully operational -- enough to power roughly 4.4 million American homes. It turns out that telling users their every idea is brilliant requires a lot of energy. Stargate moves forward despite early skepticism When OpenAI announced Stargate in January, critics questioned whether the company could deliver on its ambitious $500 billion funding promise. Trump ally and frequent Altman foe Elon Musk wrote on X that "They don't actually have the money," claiming that "SoftBank has well under $10B secured." Tech writer and frequent OpenAI critic Ed Zitron raised concerns about OpenAI's financial position, noting the company's $5 billion in losses in 2024. "This company loses $5bn+ a year! So what, they raise $19bn for Stargate, then what, another $10bn just to be able to survive?" Zitron wrote on Bluesky at the time. Six months later, OpenAI's Abilene data center has moved from construction to partial operation. Oracle began delivering Nvidia GB200 racks to the facility last month, and OpenAI reports it has started running early training and inference workloads to support what it calls "next-generation frontier research." Despite the White House announcement with President Trump in January, the Stargate concept dates back to March 2024, when Microsoft and OpenAI jointly planned a $100 billion supercomputer as part of a five-phase plan. Over time, the plan evolved into its current form as a partnership with Oracle, SoftBank, and CoreWeave. "Stargate is an ambitious undertaking designed to meet the historic opportunity in front of us," writes OpenAI in the press release announcing the latest deal. "That opportunity is now coming to life through strong support from partners, governments, and investors worldwide -- including important leadership from the White House, which has recognized the critical role AI infrastructure will play in driving innovation, economic growth, and national competitiveness."

OpenAI and Oracle ink deal to build massive Stargate data center, total project will power 2 million AI chips -- Stargate partner SoftBank not involved in the project

Among the concerns raised about the Stargate project, which involves partnerships with OpenAI, Oracle, and SoftBank, were scarce details about infrastructure support. Little by little, the companies disclosed their intentions and, on Tuesday, OpenAI and Oracle announced plans to build an additional 4.5 gigawatts (GW) of Stargate data center infrastructure in the U.S., pushing OpenAI's total planned capacity beyond 5 GW. Interestingly, SoftBank is not involved in financing this buildout, despite being part of the Stargate project. Under the terms of the plan announced in January, OpenAI, Oracle, and Softbank plan to build 20 data centers each measuring 500,000 square feet (46,450 square meters). However, it was unclear how they intended to power the data centers, as it does not look like the U.S. infrastructure has enough spare capacity to power the additional AI servers, cooling systems, and networking equipment used in AI data centers unless some sort of additional infrastructure is built. The announced 4.5 GW of infrastructure indeed refers primarily to electrical power availability, which is among the limiting factors for AI development these days. OpenAI claims that the expanded infrastructure of 5 GW will enable its data centers to power over two million AI processors, though it does not disclose whether the infrastructure is meant to support 1.4 kW Blackwell Ultra processors or 3.6 kW Rubin Ultra processors. If a 5 GW infrastructure were to power only AI GPUs, then it could feed 3.571 million Blackwell Ultra or 1.388 million Rubin Ultra GPUs. However, AI accelerators typically consume only half of the entire data center's power, without taking into account power usage effectiveness (PUE), so the actual number of supported GPUs would be lower. The new 4.5 GW-capable facilities may be built in states such as Texas, Michigan, Wisconsin, and Wyoming, though exact locations are still being finalized. This is in addition to an existing site under construction in Abilene, Texas, which OpenAI considers a proof-of-concept facility to ensure its ability to deploy infrastructure at scale and speed. OpenAI believes that lessons learned from Abilene will help with the execution of subsequent sites. Parts of the Abilene facility -- Stargate I -- are now active as Oracle began installing server racks based on Nvidia's GB200 platform last month. OpenAI has begun utilizing this infrastructure to conduct early-stage AI training and inference tasks as part of its next-generation research initiatives.

Oracle to Supply OpenAI With 2 Million AI Chips for Data Centers

OpenAI and Oracle Corp. announced they will develop 4.5 gigawatts of additional US data center capacity in an expanded partnership, furthering a massive plan to power artificial intelligence workloads. OpenAI has yet to name the data center sites it will codevelop with Oracle, but states including Texas, Michigan, Wisconsin and Wyoming are under consideration. Together with its facility being built in Abilene, Texas, the company said it will have more than 5 gigawatts total in capacity, running on more than 2 million chips for AI work. Bloomberg earlier this month reported OpenAI's plans to rent the additional data center capacity from Oracle.

OpenAI talks Oracle into another 2M GPUs worth of datacenter

AI hype man and OpenAI CEO Sam Altman has convinced his buddies at Oracle to bring an additional 4.5 gigawatts of datacenter capacity online in the US as part of the startup's Stargate initiative. The announcement made in a blog post on Tuesday now boasts that Oracle will furnish OpenAI with at least five gigawatts worth of capacity in total, enough for more than two million GPUs. "This significantly advances our progress toward the commitment we announced at the White House in January to invest $500 billion into 10 gigawatts of AI infrastructure in the US over the next four years," the AI megalith wrote. "We now expect to exceed our initial commitment thanks to strong momentum with partners including Oracle and SoftBank." That's, of course, assuming the check clears. Unfortunately, the startup stopped short of breaking down how exactly Stargate's backers are going to pay for all that infrastructure. According to a report back in January, OpenAI and SoftBank had each agreed to plow $19 billion apiece into the project. But unless something has changed dramatically in the past six months or so, it won't be OpenAI's cash Altman is spending. According to CNBC, the model builder and AI flag bearer only expects to bring in $12.7 billion in revenues this year. That's revenue, not profit. Then, even if OpenAI and SoftBank can come up with the cash, we estimate the cost of the two million GPUs at nearly $100 billion, and that's not even taking into consideration the cost of the power plants that OpenAI and its pals will need to run them. To put things in perspective, in Oracle's 2025 fiscal year, the database giant and aspiring cloud provider netted $57.4 billion in revenues and invested $21 billion in capital expenditures. This suggests that the 4.5 gigawatts of capacity may be more of an aspiration than a firm commitment, with the project likely built in phases, dependent on sufficient demand and adequate power. OpenAI does, however, expect the new project to create over 100,000 jobs, although the startup admits not all of them will be permanent. Whether that is because many of them are tied directly to the construction and deployment of the infrastructure, or because AI will eventually render the roles redundant, who's to say. Alongside its expanded partnership with Oracle, OpenAI has provided an update on its Stargate I datacenter in Abilene, Texas, which it says is partially operational. "Oracle began delivering the first Nvidia GB200 racks last month, and we recently began running early training and inference workloads," the company wrote. No mention of SoftBank in this particular buildout, and the Wall Street Journal previously wrote that SoftBank was not involved here, seemingly contradicting an earlier report from Bloomberg. Oracle is reportedly spending $40 billion to furnish the site with some 400,000 Nvidia GB200 superchips, though this again appears to be a phased deployment with roughly 200 megawatts of capacity scheduled to come online this year -- by our estimate, enough for about 1,500 NVL72 racks or 54,000 GB200 superchips. The remaining capacity won't power on until sometime in 2026. The Register reached out to Oracle and OpenAI; we'll let you know if we hear anything back. ®

SoftBank and OpenAI's Stargate aims building small data center by year-end, WSJ reports

July 21 (Reuters) - Stargate, a multi-billion-dollar effort by ChatGPT's creator OpenAI, SoftBank (9434.T), opens new tab and Oracle (ORCL.N), opens new tab to supercharge the U.S.' AI ambitions is now setting the more modest goal of building a small data center by the end of the year, likely in Ohio, the Wall Street Journal reported on Monday. In January, U.S. President Donald Trump hosted top tech CEOs at the White House to highlight the $500 billion Stargate Project, which would create more than 100,000 jobs in the country. SoftBank and OpenAI, which jointly lead the joint venture, have been at odds over crucial terms of the partnership, including where to build the sites, the report said, citing people familiar with the matter. In a joint statement, the two companies told Reuters they were moving "with urgency on site assessments" and were also advancing projects in multiple states. When the project was unveiled, the companies involved, along with other equity backers of Stargate, had committed $100 billion for immediate deployment, with the remaining investment expected to occur over the next four years. Oracle Chairman Larry Ellison said at the time that the first of the project's data centers was already under construction in Texas. Trump has prioritized winning the AI race against China and declared, on his first day in office, a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online. Reporting by Preetika Parashuraman in Bengaluru; additional reporting by Rishabh Jaiswal; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

July 22 (Reuters) - Cloud firm Oracle (ORCL.N), opens new tab and OpenAI plan to develop 4.5 gigawatts of additional data center capacity, the ChatGPT developer said on Tuesday. The commitment is part of their Stargate joint venture, which aims to establish the United States as a leader in artificial intelligence amid intensifying global competition. Including a data center site in Abilene, Texas, the expansion will bring the total data center capacity under construction to more than 5 gigawatts and is expected to operate more than 2 million chips, the company said. Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

July 22 (Reuters) - OpenAI and Oracle (ORCL.N), opens new tab will develop another 4.5 gigawatts of data center capacity, expanding a tie-up that has promised hundreds of billions of dollars in infrastructure investment to keep the U.S. ahead in the global artificial intelligence race. The ChatGPT maker did not disclose the locations or funding details for the new facilities in Tuesday's announcement, opens new tab. The move builds on the Stargate initiative, an up to $500 billion and 10 gigawatt project that also includes Japanese technology investor SoftBank Group (9984.T), opens new tab and is setting up its first AI data center in Abilene, Texas. OpenAI, as well as its backer Microsoft (MSFT.O), opens new tab, are among the technology companies pouring billions of dollars on data centers to power generative AI services such as ChatGPT and Copilot that require huge amounts of computing power. The growing use of AI in sensitive sectors such as defense, as well as China's push to catch up, has made the nascent technology a top priority for U.S. President Donald Trump, who unveiled Stargate at the White House in January. The new data centers will bring Stargate's total capacity under development to more than 5 gigawatts, which will run on over 2 million chips, OpenAI said in a blog post, adding that the tie-up now expects to exceed its initial commitment. Oracle and SoftBank did not immediately respond to requests for comment. The White House also did not immediately respond to a request for comment. Analysts have raised doubts about the venture's ability to secure the funding, including $100 billion for immediate deployment. In January, xAI owner Elon Musk, dismissed the group, saying "they don't actually have the money." OpenAI and SoftBank will each commit $19 billion to fund Stargate, reports said in January. The Wall Street Journal reported on Monday the two companies have been at odds with each other and Stargate is now setting a more modest goal of building a small data center at end-2025, likely in Ohio. Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid and Mrigank Dhaniwala Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI partners with Oracle to built out 4.5 gigawatts in data center capacity

OpenAI with Oracle to add an astounding 4.5 gigawatts of US data center capacity to power the massive workload required by its large language models. The companies haven't specified where these new centers will be built, but Texas, Michigan, Wisconsin and Wyoming are all under consideration. The ChatGPT maker says this new capacity is a part of , and that together with its in Abilene, Texas, the company is projecting more than five GW of total capacity running over two million AI chips once the new centers are complete. Oracle began delivering its GB200 racks last month for the Abilene site as it begins operations. OpenAI estimates that the massive undertaking will create over 100,000 jobs, though data centers historically , with most of the jobs tied to construction. While details on budget were not shared, OpenAI says that these new data centers represent significant progress toward its promise of investing $500 billion in the United States to build out over the next four years. These investments, which are all part of The Stargate Project, are being made alongside SoftBank and Oracle as partners, though SoftBank is not financing this phase. This announcement comes as big tech companies are pouring billions into and power agreements to sustain the growth of AI and power future models. Google recently to secure 3,000 megawatts of hydroelectric power, while Microsoft is planning to of Three Mile Island. In a announcing the new project, Open AI said " Stargate is an ambitious undertaking designed to meet the historic opportunity in front of us. That opportunity is now coming to life through strong support from partners, governments, and investors worldwide -- including important leadership from the White House, which has recognized the critical role AI infrastructure will play in driving innovation, economic growth, and national competitiveness." OpenAI and others are racing to build compute power at an industrial scale, with some US states to land the projects.

OpenAI expands Oracle data center deal, says parts of Stargate 1 in Texas are operational

OpenAI CEO Sam Altman, accompanied by U.S. President Donald Trump, Oracle CTO Larry Ellison (R), and SoftBank CEO Masayoshi Son (2nd-R), speaks during a news conference in the Roosevelt Room of the White House on January 21, 2025 in Washington, DC. Oracle and OpenAI will develop an additional 4.5 gigawatts of Stargate data center capacity in the U.S., the companies announced on Tuesday, kicking off an expansion of an already massive infrastructure project. Stargate is a joint venture between OpenAI, Oracle and Softbank that aims to invest up to $500 billion in artificial intelligence infrastructure in the U.S. over the next four years. President Donald Trump announced Stargate shortly after his inauguration in January. OpenAI said the additional data center capacity will create over 100,000 jobs across construction and operations roles in the U.S., and pushes the total Stargate AI data center capacity under development to over 5 gigawatts, according to a blog post. The update from OpenAI comes one day after the Wall Street Journal reported that the Stargate project has struggled to get off the ground. The report said the companies have scaled back their near-term plans and were striving to open a small data center by the end of the year.

OpenAI and Softbank’s $500 Billion Data Center Project Is Already Stumbling

Six months after a White House press conference, Stargate reportedly hasn't secured any data center deals. Stargate, the ambitious joint venture announced at the White House back in January between OpenAI, Oracle, the Japanese holding company Softbank, and others, appears to be struggling to deliver on its bold promises just six months later. The Wall Street Journal reported today, citing unnamed sources, that the Stargate Project has yet to finalize any deals for new data centers. The report also says the group is scaling back its near-term goals. When it was announced on Jan. 21, Stargate was pitched as a new company with plans to spend $500 billion over the next four years to build AI infrastructure across the U.S. OpenAI claimed in a post on X (formerly Twitter) that $100 billion of that would be deployed “immediately.†The company was named after the 1994 sci-fi film about an interstellar gateway. The post promised the new infrastructure would “secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.†Initial backers of the company include OpenAI, Oracle, SoftBank, and MGX, with SoftBank and OpenAI leading the charge. SoftBank was said to be taking on the financial responsibility of the venture, while OpenAI handles operations. SoftBank’s CEO, Masayoshi Son, serves as the company’s chairman. Son, OpenAI CEO Sam Altman, and Oracle co-founder Larry Ellison joined President Donald Trump at the White House for the first press conference of his new term to promote the venture. At the event, both Altman and Ellison said Stargate’s work could lead to cures for diseases like cancer. Altman even declared that Stargate would be “the most important project of this era.â€Â At the time of its announcement, Altman’s longtime rival, Elon Musk, immediately cast doubt on the project. Musk responded directly to OpenAI’s X statement, writing, “They don’t actually have the money,†and added, “SoftBank has well under $10B secured. I have that on good authority.†The Wall Street Journal reported today that OpenAI and Softbank have not been able to agree on key issues regarding the partnership, including where to build the new sites. The group is now aiming to open a single, smaller data center, likely in Ohio, by the end of the year, according to sources familiar with the matter. Despite the slow start for Stargate, Altman is pushing ahead with his own broader data center ambitions. Just today, OpenAI said it's partnering to develop 4.5 gigawatts of additional Stargate-branded data center capacity in the U.S., although the deal does not involve Softbank. Altman has been using the “Stargate†name for data center projects that fall outside the official SoftBank partnership, including facilities in Abilene and Denton, Texas, according to the Journal. Those particular sites are reportedly not being funded by SoftBank, even though the Japanese company holds the trademark for Stargate. In a press release announcing its new partnership with Oracle, OpenAI said, “With SoftBank, we’re moving quickly on site assessments and reimagining how data centers are designed to power advanced AI.â€

Open AI's massive Project Stargate is already struggling, may be scaled back

OpenAI may have already significantly scaled back its multi-billion dollar Project Stargate initaitive, with no data center deals completed under the project in the six months it has been live. Announced in January 2025 as a $500 billion effort to "[build] new AI infrastructure for OpenAI in the United States," people familiar with the matter say Project Stargate is now targeting a smaller data center in Ohio by the end of the year, marking a slowdown compared with early plans. Despite delayed progress, OpenAI CEO Sam Altman and SoftBank CEO Masayoshi Son have both stated that the partnership remains strong and active. According to new Wall Street Journal reporting though, OpenAI and SoftBank have disagreed over data center locations and the use of SB Energy sites (a SoftBank-backed energy firm). OpenAI has also made its own progress separate from the Project, including striking up a $30 billion deal with Oracle for 4.5 gigawatts of capacity. In January, OpenAI said: "The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalize definitive agreements." Speaking on an investor call last month, Oracle CEO Safra Catz countered Altman's assertion: "Stargate is not formed yet." Although many of the industry's key players, including Arm, Microsoft, Nvidia, Oracle and OpenAI, are partnered with the project, Stargate is still presented with challenges including bringing down costs and sourcing land, AI chips and energy. Dubbed the largest investment of its kind, the $500 billion Stargate Project was followed by further announcements designed to strengthen the US' position as a global leader in tech and AI, including $500 billion from Apple geared towards manufacturing and training, and a further $500 billion from Nvidia to expand US AI infrastructure. Like Stargate, those are long-term four-year projects, and it's unclear how much progress has been made and whether any regulatory, financial or other struggles lay ahead.

OpenAI's data center ambitions collide with reality

Many advances in generative AI have come from dramatically boosting the computing power applies to model training, while new approaches and increased adoption mean that running those models demands more and more data centers, too. Driving the news: The Wall Street Journal reported Monday that OpenAI has run into conflicts and stumbles in its relationship with SoftBank, a key partner in its effort to dramatically scale up its access to computing capacity. * The companies pledged in January that they would immediately invest $100 billion. * But no specific deals have yet been inked and near-term ambitions have been scaled back, with this year likely to yield only work on a single small U.S. data center, likely in Ohio, per the WSJ. * The Journal said other differences have cropped up in the six months since Sam Altman, SoftBank CEO Masayoshi Son and Oracle Chairman Larry Ellison announced their plans with President Trump in the Roosevelt Room of the White House. Yes, but: OpenAI announced Tuesday an expansion of its work with Oracle that will see the pair build a further 4.5 gigawatts of capacity on top of an 800-megawatt project already under development in Abilene, Texas. * "With this deal, we expect we will exceed the $500 billion commitment we announced at the White House 6 months ago; we are now working to expand that with Oracle, SoftBank, Microsoft, and others," Sam Altman told OpenAI employees Monday in a memo seen by Axios. What they're saying: Altman acknowledged in the employee memo that the company's thirst for computing is "starting to strain the supply chain" and will "require some real creativity." Zoom in: OpenAI, which once relied solely on partner and investor Microsoft, has been partnering with an array of different companies and governments to get more processing power. * Its OpenAI for Countries project, announced in May, aims to bring various nations into the mix as partners. It signed its first such deal in May with the United Arab Emirates. * As part of OpenAI for Countries, partners will also agree to invest in U.S. projects -- helping the company fund yet more data centers here. * OpenAI's chief strategy officer Jason Kwon traveled across Asia for three weeks meeting with governments and potential investors in India, Singapore, Korea and other countries, though no additional deals have yet been announced. * OpenAI is even turning to rival Google for compute capacity. Altman reassured employees in his memo that additional capacity is coming sooner rather than later. * He noted that the company expects to have the equivalent of 2 million Nvidia A100 processors available for use by the end of August and then roughly double that capacity by the end of the year. Between the lines: It's not easy to keep tabs on all the different data center projects OpenAI has announced in recent months. * The company has used the Stargate name to describe a number of next-generation data center efforts, but various projects under that banner involve different partners. * For example, its Middle East project is dubbed Stargate UAE and involves Oracle, Nvidia, Cisco, SoftBank and G42, a Middle East-based AI startup backed by Microsoft and others. * The new project announced Tuesday is also dubbed Stargate, though SoftBank (which actually registered the Stargate trademark) isn't a part of the effort. The big picture: OpenAI isn't the only company with big needs. * Global data center capacity is seen growing by 23% per year through 2030, according to a Morgan Stanley report. * Much of that growth is being spurred by a handful of big players, including Meta, Google, Microsoft and xAI. Elon Musk said Tuesday that his xAI company has 230,000 GPUs, including 30,000 of Nvidia's GB200, up and running for training Grok in its first Colossus supercluster. * Musk said the first batch of a planned 550,000 high-end Nvidia chips, also for training models, will come online in a few weeks. xAI relies on cloud providers to handle running Grok. Anthropic, meanwhile, is acknowledging that meeting its data center needs will require the company to show more flexibility in choosing its partners, including taking money from Middle East governments. * "Unfortunately, I think 'No bad person should ever benefit from our success' is a pretty difficult principle to run a business on," Amodei said in a memo to staff, per Wired. The bottom line: All the companies chasing AI with superhuman capabilities say they will need ever more money, more electricity and more processing power.

Stargate is back on - OpenAI and Oracle unveil massive data center expansion plans in major AI push

After weeks of speculation both with regards to Oracle's mystery cloud deal and potential delays to Project Stargate, OpenAI has confirmed the project is indeed still going ahead. The deal, worth $30 billion per year, was revealed in a SEC filing by Oracle on June 30, but the company failed to mention who the big contract had been struck with. We now know the contract involves 4.5 gigawatts of data center capacity, which equates to two Hoover Dams' worth of power or the equivalent of four million homes. This brings the AI giant's total Oracle data center capacity up to five gigawatts, which is enough to power two million chips. The huge deal with Oracle marks a major step forward in OpenAI's journey to 10 gigawatts, as outlined in its four-year, $500 billion Project Stargate strategy. OpenAI confirmed its first site, Stargate I, will be located in Abilene, Texas, with Oracle and OpenAI jointly building it. According to the company, parts of Stargate I are already operational, with early AI training and inference underway using Nvidia GB200 superchips. The first site has already generated "thousands" of jobs, with OpenAI hoping to support 100,000 workers as part of the broader scheme. Responding to reports that discussions had stalled between SoftBank and OpenAI amid disagreements, the ChatGPT-maker confirmed: "Our partnership with SoftBank is moving forward with strong momentum." "Over the past six months, growing interest in Stargate has helped shape and expand our vision for this effort," OpenAI added. Despite broadening its list of providers and partners, the company added an interesting caveat: "Microsoft will continue to provide cloud services for OpenAI, including through Stargate." Microsoft used to have exclusivity, but that all changed when OpenAI started to bring other cloud giants onboard.

OpenAI's $500 billion Stargate project off to a slow start

OpenAI's colossal Stargate project is off to a slow start. The $500 billion effort, backed by SoftBank, Oracle, and MGX, was launched with the goal of developing AI data centers across the U.S. in a bid to secure the country's AI leadership. But, according to the Wall Street Journal, the initiative has severely scaled back its plans for the near future. Complications between SoftBank and OpenAI have delayed the project, the Journal reported. According to unnamed sources, the companies have yet to cement any deals for a data center and they haven't decided on any locations. In particular, the companies are undecided on the extent to which they should build data centers on sites tied to SoftBank-backed SB Energy, sources told the publication. People familiar with the matter say the company's new goal is to build a single, small data center by the end of the year, likely in Ohio, according to the Journal. Meanwhile, OpenAI has been referring to a pair of projects currently under construction in Texas as being part of Stargate, even though Softbank is not involved with them, the Journal reports. "Stargate is not formed yet," Oracle CEO Safra Catz said on a call with investors last month. In January, President Donald Trump announced the project at the White House, alongside OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle co-founder Larry Ellison. Altman called it "the most important project of this era" at the time. The companies have said they plan to build 10 gigawatts of AI infrastructure in the U.S. The companies pledged to invest $100 billion into the company "immediately. Meanwhile, OpenAI on Tuesday announced a $30 billion deal with Oracle to build a data center in the U.S. providing 4.5 gigawatts in additional computing capacity. "We now expect to exceed our initial commitment thanks to strong momentum," an OpenAI press release stated. The company estimates that the additional data center will create more than 100,000 jobs, including full-time operational roles, short-term construction jobs, and indirect employment in manufacturing and local service. Still, that deal does not involve Softbank.

OpenAI's skyrocketing spending could see billions of dollars in silicon headed down the AI mines in the next few years, including 2 million Nvidia chips headed to Texas Stargate facility

OpenAI consumes compute capacity like few have ever done before it. A recent report expects it to gorge itself on datacentre capacity and research between 2025 and 2030 -- burning cash at a rate of swimming pools per minute by some estimations. The Information reports that OpenAI is chasing fresh investment to allow it to expand its compute capability -- buying new graphics cards, accelerators, and processors to jumpstart new AI models. The company is said to be spending around $13 billion on Microsoft-owned datacentres this year, which could rise to around $28 billion in 2028. But the love affair with Microsoft is not set to last. OpenAI says one key investor, Japan's SoftBank, could be providing $30 billion of a hopeful $40 billion it hopes to raise in coming months, with a large amount of that cash headed toward Stargate. Stargate isn't as cool as it sounds and has nothing to do with space-age Egyptian folk. It's a plan between OpenAI, Softbank, and Oracle to build out AI infrastructure in the US. As much as $500 billion worth over four years. The first site for development is in Abilene, Texas. It's called Stargate 1, and the first Nvidia GB200 racks are being installed and already running 'early' workloads at the facility. Just today, OpenAI and Oracle inked a deal to develop over 5 gigawatts of capacity at the site, which is nearly five-fold its initial expected capacity and will incorporate... 2 million chips. OpenAI isn't footing the bill for that joint venture, which has attracted investment from the company's partners, though still needs to raise more cash. All told, The Information projects OpenAI will end up burning through as much as $20 billion in cash flow in 2027, up from $2 billion in 2024. Its fees for researching and developing new models could raise up to as much as $40 billion starting in 2028. Overall, The Information projects the company will spend something like $320 billion between 2025 and 2030. Further to all of this wild internal spending, OpenAI also has the risk of further unplanned spending in the case of, well, court cases. AI companies are under constant and historical scrutiny for their use of copyright materials in training data. The UK government has waved away many complaints by artists and passed a bill that would allow some degree of usage for copyrighted materials in training AI. Not cool. Though OpenAI is facing a slew of cases in the US by authors, and The New York Times has sued the company for use of its articles in training data, too. Similar cases are ongoing against other AI providers, such as Anthropic, and Meta has already won an early case fighting over similar grounds Whether there'll be hell to pay, that's up to the judge in each case -- that's just one judge for the copyright cases put forward by US authors, as the cases are now being consolidated. OpenAI has stated in response to the authors' cases that it believes its "models are trained on publicly available data, grounded in fair use, and supportive of innovation." Though admittedly these cases and any repercussions are unlikely to matter to OpenAI's bottom line either way. It's projected to earn up to $12.7 billion this year, according to The Information, and it's already roughly around the $10 billion mark, reports Reuters. That isn''t anywhere near its expenses but, hey, it's not entirely footing the bill itself. You'd think there'd be some cash spare to pay some of those rights holders too, but alas...

OpenAI, SoftBank to Build a Small Data Centre by 2025 End for Stargate: Report | AIM

SoftBank and OpenAI, the lead partners in the project, have been at odds over several essential aspects of the partnership. OpenAI's Stargate project, a $500 million initiative to develop advanced AI infrastructure in the United States and beyond, has faced difficulties in getting started and has scaled back its short-term plans, the Wall Street Journal (WSJ) reported on July 21. SoftBank and OpenAI, the lead partners in the project, have been at odds over several important aspects of the partnership, such as where to build the infrastructure, according to WSJ sources familiar with the matter. The goal for the end of the year is to build only a small data centre, likely in Ohio, as per the report. Alongside SoftBank and OpenAI, the project also includes partners such as Oracle, MGX, Arm, Microsoft, and NVIDIA, each contributing in its own capacities. OpenAI announced that the project would deploy an initial $100 million "immediately" when announced in January. The Stargate project began with the construction of a supercomputing campus in Abilene, Texas, with plans in place to establish similar sites elsewhere. The 1.2-gigawatt facility in Abilene, Texas, is under construction with support from Oracle, among other partners. However, the WSJ report, citing people familiar with the matter, states that SoftBank is not involved in the construction of this particular facility. As per reports, OpenAI has also recently signed a $30 billion data centre deal with Oracle to lease 4.5 gigawatts of computing power. While the Stargate project focuses on building AI infrastructure primarily in the USA, OpenAI also announced a global initiative called OpenAI for Countries, which supports national governments in building AI infrastructure aligned with democratic principles. The initiative's key elements involve collaborating with countries to establish secure data centres within their borders. These centres will promote data sovereignty, foster local industries and enable AI customisation using local data in a private and compliant manner.

OpenAI, Oracle Announce Expansion of Stargate | AIM

They're set to add 4.5 gigawatts of Stargate data centre capacity in the United States. Oracle and OpenAI announced on July 22 an agreement to develop 4.5 gigawatts (GW) of additional Stargate data centre capacity in the United States. This marks the latest development in the $500 billion initiative to construct AI infrastructure across the United States, led by OpenAI and SoftBank in partnership with Oracle, MGX, Arm, Microsoft, and NVIDIA. The agreement between OpenAI and Oracle, along with the Stargate I site that the two companies are developing in Abilene in Texas, will result in more than 5 GW of AI data centre capacity under construction, equipped with over 2 million chips. "This significantly advances our progress toward the commitment we announced at the White House in January to invest $500 billion into 10 gigawatts of AI infrastructure in the U.S. over the next four years," OpenAI said in the announcement. "We now expect to exceed our initial commitment thanks to strong momentum with partners including Oracle and SoftBank," added the company. However, earlier reports indicated that OpenAI has encountered difficulties in building data centres with its other partner in the Stargate project, SoftBank. A report from The Wall Street Journal stated that the two companies have been at odds over several important aspects of the partnership, such as where to build the infrastructure. Thus, OpenAI and SoftBank aim to build only a small-scale data centre by the end of this year, likely in Ohio, according to the report. While it isn't clear if OpenAI is intending to respond to the above reports, it said that, "Complementing this expansion with Oracle, our partnership with SoftBank is moving forward with strong momentum. Both are critical to meeting OpenAI's continually expanding compute needs." "With SoftBank, we're moving quickly on site assessments and reimagining how data centres are designed to power advanced AI," added the company.

OpenAI partners with Oracle to develop another 4.5 gigawatts of data center capacity - SiliconANGLE

OpenAI partners with Oracle to develop another 4.5 gigawatts of data center capacity OpenAI has inked a deal with Oracle Corp. to develop 4.5 gigawatts' worth of data center capacity in the U.S. The companies announced the agreement today. It's part of Stargate, an initiative to build a network of stateside artificial intelligence data centers for OpenAI. The project will see the ChatGPT developer and its partners invest up to $100 billion in 10 gigawatts of AI infrastructure . In a blog post, OpenAI stated that it now expects to "exceed our initial commitment thanks to strong momentum with partners." But while the company's long-term goals for the project may have grown more ambitious, it's reportedly scaling back its near-term plans. The Wall Street Journal reported on Monday that the scope of the project's initial phase has been "sharply" reduced. According to the paper's sources, OpenAI has set a goal of building a small data center by year's end. It's believed the facility will likely be located in Ohio. OpenAI is currently working on two additional data center campuses in Texas. The AI provider's construction push is being complicated by disagreements with SoftBank Group Corp., the Journal cited its sources as saying. The Japanese conglomerate became OpenAI's biggest backer this year after it committed to leading a funding round worth up to $40 billion. SoftBank owns the Stargate trademark. According to the Journal, several key terms of the partnership have not yet been finalized. That includes the role of SB Energy, a SoftBank subsidiary, in the construction initiative. OpenAI and SoftBank have reportedly not yet agreed on how many Stargate data centers will be built on sites tied to SB Energy. The ChatGPT developer stated in today's blog post that "with SoftBank, we're moving quickly on site assessments and reimagining how data centers are designed to power advanced AI." So far, OpenAI has reportedly raised a quarter of the $40 billion that its SoftBank-led funding round could be worth. The AI provider is expected to launch an effort to raise the remaining $30 billion on July 28. SoftBank will provide up to three quarters of the sum. Oracle, for its part, is reportedly poised to generate more than $30 billion annually from its AI infrastructure deal with OpenAI. It expects to reach that revenue milestone within three years. In addition to the 4.5 gigawatts of capacity announced today, Oracle is responsible for building one of OpenAI's Texas data center campuses. The site is expected to house up to 400,000 of Nvidia Corp.'s GB200 Grace Blackwell accelerators. Each chip features two Blackwell B200 graphics cards and a 72-core Grace central processing unit. OpenAI disclosed today that Oracle has started moving GB200-equipped server racks into the data center. Furthermore, the ChatGPT developer's researchers are already using the hardware to run AI training and inference workloads. The data center is expected to become fully operational in mid-2026.

OpenAI, Oracle expand $500B Stargate spend as Musk unveils bold xAI plan

OpenAI expands Stargate with Oracle to surpass 5 GW of AI power, while Elon Musk outlines plans for xAI to deploy 50 million H100-scale units in 5 years. OpenAI announced a 4.5 gigawatt expansion in partnership with Oracle to power future AI development. The deal, part of OpenAI's long-term vision to deploy 10 gigawatts of compute capacity across the US, will add to its existing Stargate I facility in Abilene, Texas, and push the project beyond its original commitment made at the White House in January, the firm said on Tuesday. "This is a gigantic infrastructure project," OpenAI CEO Sam Altman posted on X, sharing images of the Abilene site. In an earlier post, he confirmed that over 1 million GPUs will be online by year-end, and joked, "Now they better get to work figuring out how to 100x that." The additional Oracle deal will bring Stargate's total development pipeline to over 5 GW, enough to power over 2 million AI chips. "We are planning to significantly expand the ambitions of Stargate past the $500 billion commitment we announced in January," Altman added. Related: OpenAI plans to ship 100 million pocket-sized AI devices for everyday use Following the announcement by OpenAI, Elon Musk also shared a bold plan for his AI firm xAI. "The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years," the billionaire wrote in a Tuesday post on X. According to estimates by X user TeslaPrice, this would represent 500 times the compute power of what was considered the world's most powerful AI supercomputer just one year ago. XAI's Colossus 2 supercomputer, set to go live soon, will use 550,000 GB200 chips, roughly equivalent to 5.5 million H100s. Musk's plan with xAI, if realized, would nearly 10x that. "Elon is saying they will get to equivalent of 50 million H100 within 5 years. So that will be 500x from the state of the art cluster 12 months ago," the user estimated. Related: Elon Musk confirms new 'America Party' will embrace Bitcoin Earlier this year, US President Donald Trump announced the launch of Stargate, a $500 billion AI infrastructure initiative led by the private sector. The project is backed by OpenAI, SoftBank and Oracle, aiming to build AI data centers across the US and create over 100,000 jobs. However, according to a recent report from The Wall Street Journal, the initiative has faced major delays and internal disagreements between key partners SoftBank and OpenAI. Despite initial promises to deploy $100 billion immediately, the project has scaled back its near-term goals to building a single data center by year-end, according to the report.

OpenAI and Oracle sign massive new AI data center deal

The plan is biblical in scale: 4.5 gigawatts of power, a $100 billion 'Stargate' initiative, and data centers vast enough to house 400,000 of Nvidia's most powerful chips. OpenAI and Oracle Corp. announced an agreement to develop 4.5 gigawatts of data center capacity in the United States, forming part of the Stargate initiative to build a network of AI data centers for OpenAI.a The Stargate initiative aims to establish a network of artificial intelligence data centers across the United States. OpenAI and its partners plan to invest up to $100 billion in 10 gigawatts of AI infrastructure. OpenAI indicated in a blog post that it anticipates exceeding its initial commitment due to strong partner momentum. However, reports from The Wall Street Journal suggest a sharp reduction in the scope of the project's initial phase, despite the long-term goals growing more ambitious. OpenAI has set a goal of constructing a small data center by the end of the year, likely located in Ohio. Additionally, the company is engaged in the development of two other data center campuses in Texas. The progression of OpenAI's construction efforts is complicated by ongoing disagreements with SoftBank Group Corp. SoftBank became OpenAI's largest backer this year after committing to lead a funding round potentially valued at $40 billion, and SoftBank owns the Stargate trademark. The UK is now a key strategic partner for OpenAI Key terms of the partnership between OpenAI and SoftBank have not been finalized, including the specific role of SB Energy, a SoftBank subsidiary, in the construction initiative. An agreement has not yet been reached regarding the number of Stargate data centers to be built on sites affiliated with SB Energy. OpenAI stated in a recent blog post that collaboration with SoftBank involves focusing on site assessments and reimagining data center designs to support advanced AI operations. OpenAI has reportedly secured a quarter of the $40 billion funding round led by SoftBank. An initiative to raise the remaining $30 billion is anticipated to commence on July 28, with SoftBank contributing up to three-quarters of this sum. Oracle expects to generate over $30 billion annually from its AI infrastructure agreement with OpenAI, anticipating this revenue milestone will be reached within three years. Beyond the 4.5 gigawatts of capacity announced, Oracle is also constructing one of OpenAI's Texas data center campuses. This facility is projected to house up to 400,000 Nvidia Corp. GB200 Grace Blackwell accelerators. Each GB200 chip incorporates two Blackwell B200 graphics cards and a 72-core Grace central processing unit. Oracle has begun the process of moving GB200-equipped server racks into this data center. OpenAI researchers are presently utilizing this hardware for AI training and inference workloads. This Texas data center is expected to achieve full operational status by mid-2026.

OpenAI and Oracle Just Announced a Massive AI Infrastructure Deal

Roughly six months since President Donald Trump announced Stargate, an OpenAI and Softbank-run joint venture to build AI infrastructure in the United States, new reporting suggests that those efforts haven't gone exactly as planned, prompting the ChatGPT creator to seek additional partnerships. Trump announced Stargate in January with help from three notable billionaires: OpenAI's Sam Altman, Softbank's Masayoshi Son, and Oracle's Larry Ellison. The meeting, which occurred on just the second day of Trump's new presidency, was Trump's first major push into the world of AI. At the time, Altman announced that Stargate had already broken ground on their first facility, a massive data center in central Texas, but according to a report from The Wall Street Journal, that facility is being constructed without Softbank's involvement. What's more, they say that Stargate has yet to complete a single data center deal. The WSJ report alleges that OpenAI and Softbank have been at odds over numerous key aspects of the Stargate project, including the planned locations of the data centers and how much they should rely on Softbank-backed energy vendors. The companies originally had plans to invest $100 billion in AI infrastructure by the end of 2025, but have revised their ambitions to something more achievable: building a small data center in Ohio. OpenAI hasn't been content to wait for Softbank. The company has partnered with others, including Oracle, to procure the computing power needed to create their latest and greatest AI models.

SoftBank and OpenAI's Stargate aims building small data centre by year-end: WSJ - The Economic Times

Stargate, a multi-billion-dollar effort by ChatGPT's creator OpenAI, SoftBank and Oracle to supercharge the US' AI ambitions is now setting the more modest goal of building a small data centre by the end of the year, likely in Ohio, the Wall Street Journal reported on Monday. In January, US President Donald Trump hosted top tech CEOs at the White House to highlight the $500 billion Stargate Project, which would create more than 100,000 jobs in the country. SoftBank and OpenAI, which jointly lead the joint venture, have been at odds over crucial terms of the partnership, including where to build the sites, the report said, citing people familiar with the matter. In a joint statement, the two companies told Reuters they were moving "with urgency on site assessments" and were also advancing projects in multiple states. When the project was unveiled, the companies involved, along with other equity backers of Stargate, had committed $100 billion for immediate deployment, with the remaining investment expected to occur over the next four years. Oracle Chairman Larry Ellison said at the time that the first of the project's data centres was already under construction in Texas. Trump has prioritized winning the AI race against China and declared, on his first day in office, a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online.

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion - The Economic Times

OpenAI announced that Oracle will provide 2 million chips to help scale its AI data center infrastructure. This partnership aims to boost computing power for OpenAI's advanced models like ChatGPT, reflecting growing demand for AI capabilities and the need for massive processing resources to support training and deployment.OpenAI and Oracle will develop another 4.5 gigawatts of data center capacity, expanding a tie-up that has promised hundreds of billions of dollars in infrastructure investment to keep the U.S. ahead in the global artificial intelligence race. The ChatGPT maker did not disclose the locations or funding details for the new facilities in Tuesday's announcement. The move builds on the Stargate initiative, an up to $500 billion and 10 gigawatt project that also includes Japanese technology investor SoftBank Group and is setting up its first AI data center in Abilene, Texas. OpenAI, as well as its backer Microsoft, are among the technology companies pouring billions of dollars on data centers to power generative AI services such as ChatGPT and Copilot that require huge amounts of computing power. The growing use of AI in sensitive sectors such as defense, as well as China's push to catch up, has made the nascent technology a top priority for U.S. President Donald Trump, who unveiled Stargate at the White House in January. The new data centers will bring Stargate's total capacity under development to more than 5 gigawatts, which will run on over 2 million chips, OpenAI said in a blog post, adding that the tie-up now expects to exceed its initial commitment. Oracle and SoftBank did not immediately respond to requests for comment. The White House also did not immediately respond to a request for comment. Analysts have raised doubts about the venture's ability to secure the funding, including $100 billion for immediate deployment. In January, xAI owner Elon Musk, dismissed the group, saying "they don't actually have the money." OpenAI and SoftBank will each commit $19 billion to fund Stargate, reports said in January. The Wall Street Journal reported on Monday the two companies have been at odds with each other and Stargate is now setting a more modest goal of building a small data center at end-2025, likely in Ohio.

$500 Billion Stumble: SoftBank-OpenAI's Massive AI Vision Faces Setbacks - Oracle (NYSE:ORCL)

Six months after its high-profile announcement at the White House, the $500 billion Stargate project -- an ambitious joint venture between OpenAI and SoftBank to ramp up America's artificial intelligence infrastructure -- has run into major delays and scaled-back ambitions. The Details: Despite a splashy debut that included vows of investing $100 billion "immediately," Stargate has yet to secure a single major data center deal. Instead, the project is now focused on building a much smaller facility in Ohio by year's end, as partners struggle to agree on crucial terms, according to the Wall Street Journal. Read Next: Opendoor Stock Frenzy Continues -- Is $40 Per Share The Next Stop? At the heart of the slowdown are differences between OpenAI and SoftBank regarding the partnership's structure and implementation, which have prevented the new entity from making significant advances. Although both companies committed billions and shared leadership responsibilities -- SoftBank's Masayoshi Son overseeing finances and OpenAI's Sam Altman managing operations -- persistent disputes over control and strategy have left Stargate's momentum waning. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Why It Matters: OpenAI has forged ahead independently, recently striking a blockbuster $30 billion annual deal with Oracle Corp. ORCL for cloud computing capacity. The agreement with Oracle, along with smaller deals with other data center providers, brings OpenAI close to meeting the annual expansion targets Stargate set out for itself, even as the joint project lags behind. SoftBank, undeterred by setbacks, remains optimistic about OpenAI and is reportedly interested in further investment despite Stargate's rocky start. While leaders from both companies publicly maintain that their partnership is strong, the reality is that slow progress and internal disagreements have dampened early expectations. Read Next: Rare Earth Royalty: Meet The Power Players Shaping The Industry Photo: Shutterstock ORCLOracle Corp$238.75-2.73%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum93.58Growth56.34QualityN/AValue13.51Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

The Half A Trillion Dollar Stargate AI Venture Is Now Falling Victim To The Disagreements Between OpenAI And SoftBank

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Stargate was supposed to cement America's ascendancy in the still-fledgling AI sphere, which is widely considered the defining technology of the 21st century. Yet, this gargantuan venture, worth around half of a trillion dollars, is now falling victim to the disagreements between it's principal backers: OpenAI and SoftBank. As a refresher, President Trump had announced the Stargate venture back in January, entailing at least $500 billion in investments to build out the requisite AI infrastructure in the US over the next four years. Stargate was supposed to rope in a number of tech companies, with OpenAI, SoftBank, Oracle, and MGX initially identified as key nodes of this ambitious venture. However, the project has devolved into a duopoly of sorts, with OpenAI and SoftBank retaining primary influence over Stargate's direction. Now, as per the reporting by the Wall Street Journal, it appears that the project is falling victim to the disagreements between it's principal backers. Back in January, OpenAI and SoftBank had committed to investing $100 billion in Stargate "immediately," inviting skepticism from Elon Musk, who had bluntly declared that "they [Stargate participants] don't actually have the money." Well, six months later, SoftBank and OpenAI have massively scaled back their joint investment goals for the year, having agreed to build only a small data center in Ohio by the end of the year. What's more, the venture has failed to close even a single data center deal under the auspices of the Stargate venture so far. OpenAI is reportedly hesitant to build out Stargate's infrastructure on sites linked to SB Energy, an energy development firm backed by SoftBank. Also, while SoftBank holds the trademark for Stargate, OpenAI has liberally used the venture's high-profile tag in projects that do not involve SoftBank, such as for data centers in Abilene and Denton - both located in Texas. Interestingly, OpenAI is moving full-steam ahead in signing data center deals, even without SoftBank. For instance, the creator of GPT LLMs recently inked a mammoth 4.5GW data center deal with Oracle, which entails payments of $30 billion per year to Oracle starting in around three years. For context, OpenAI's Sam Altman is on record for saying that a 5GW data center capacity requires an investment of around $100 billion. OpenAI has also inked a separate deal with CoreWeave, that adds $4 billion to an existing $11.9 billion for using CoreWeave's gigantic GPU stash. Interestingly, OpenAI has singlehandedly concluded $100 billion worth of data center deals so far this year, which aligns with Stargate's investment target for the year. These investments, however, do not explicitly include SoftBank. Of course, officially OpenAI and SoftBank remain committed to Stargate, with the duo recently asserting that they will together build 10GW of data center capacity in the US over the next few years. So far, however, these commitments lack a definitive follow through.

Elon Musk Says OpenAI-SoftBank 'Simply Don't' Have the Money for $500 Billion Stargate -- Sam Altman Claps Back By Teaming With Oracle To 'Exceed' Initial Commitment Made To Trump - SoftBank Group (OTC:SFTBF), Oracle (NYSE:ORCL)

Oracle Corporation ORCL has partnered with OpenAI to expand the Stargate data center capacity in the U.S. by 4.5 gigawatts. This strategic investment aims to bolster the U.S.'s AI leadership and foster industrial growth. What Happened: As announced by OpenAI on Tuesday, the partnership aims to develop an additional 4.5 gigawatts of Stargate data center capacity. This move is anticipated to speed up America's reindustrialization and further U.S. AI leadership. The deal represents a major milestone for Stargate, OpenAI's AI infrastructure platform. With the addition of this new partnership with Oracle to the existing Stargate I site in Abilene, Texas, the total AI data center capacity under development will exceed 5 gigawatts. This development marks a major step forward in OpenAI's pledge, made at the White House in January, to invest $500 billion in 10 gigawatts of AI infrastructure across the U.S. over the next four years. With strong support from partners like Oracle and SoftBank Group SFTBF, the company now anticipates surpassing that original goal. "We now expect to exceed our initial commitment thanks to strong momentum with partners including Oracle and SoftBank," stated OpenAI. See Also: Larry Ellison Defended 'Friend' Elon Musk While Others Mocked Him -- 'You're Saying Elon's An Idiot. The Guy's Landing Rockets! And Who Are You?' Why It Matters: The partnership comes at a crucial time for OpenAI amid reports that the $500 billion Stargate project, a joint venture between OpenAI and SoftBank, ran into major delays and scaled-back ambitions. Furthermore, Tesla Inc. TSLA CEO Elon Musk expressed doubts about the project's financial backing. Musk posted on X, reiterating his January comment. "They simply don't," he wrote, responding to a user who reposted his earlier remark -- "They don't actually have the money." Despite these challenges, OpenAI's aggressive spending on talent and R&D, termed as "vibe spending" by JPMorgan analysts, has been a cause of concern for investors. The partnership with Oracle could provide the necessary boost to OpenAI's ambitious AI infrastructure plans and alleviate investor concerns. Read Next: Ex‑OpenAI Product Chief Says The Key To Building Success Is Gathering 'A Team Of Avengers,' Reveals Two Traits To Look Out For Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. ORCLOracle Corp$239.000.37%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum91.41Growth56.50QualityN/AValue13.60Price TrendShortMediumLongOverviewSFTBFSoftBank Group Corp$74.91-%TSLATesla Inc$330.85-0.38%Market News and Data brought to you by Benzinga APIs

Stargate Dials Back Near-Term Goal Amid Disagreement Over Data Center Sites | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Six months after project was announced, the newly formed company operating the effort has not made a deal to build a data center and has shifted its goal from investing $100 billion immediately to building one data center by the end of 2025, the Wall Street Journal (WSJ) reported Monday (July 21). The slow start was caused in part by disagreements between Stargate's two joint leaders -- SoftBank and OpenAI -- over where to build data centers, according to the report. Asked about the report by the WSJ, the companies said in a joint statement that they were making progress in several states and moving quickly to deliver AI infrastructure. In the meantime, OpenAI has struck two data center deals -- one with Oracle and one with CoreWeave -- that do not include SoftBank and that together will give OpenAI access to as much computing power as Stargate said in January that it would deliver, according to the report. When Stargate was announced in January, it was described as an up-to-$500 billion project that aimed to build big AI-focused data centers in the U.S. The first 10 were to be constructed in Texas, with the total later to be expanded to 20. It was reported in May that Oracle, one of the equity partners in Stargate, would buy $40 billion worth of Nvidia's chips to power the first Stargate project, a new data center in Abilene, Texas, and that the facility was expected to be fully operational by the middle of 2026. AI data centers are needed because traditional data centers and power grids are struggling to accommodate the computational power, data storage and energy required by AI, PYMNTS reported in January. In another, separate effort, Meta CEO Mark Zuckerberg said July 14 that his company will invest "hundreds of billions of dollars" into AI infrastructure for its superintelligence effort. On July 9, when Nvidia became the world's first $4 trillion public company, it was reported that the chip designer and manufacturer was enjoying a continuing boom in demand for AI technologies.

Oracle and OpenAI Boost Stargate AI Data Center Capacity by 4.5 Gigawatts

Oracle, OpenAI Add 4.5 GW to Stargate in $500 Billion AI Infrastructure Push Oracle and OpenAI plan to expand the Stargate project's 4.5 gigawatt data centre capacity. The enlargement comes after the first pledge to develop up to 10 gigawatts worth of AI infrastructural capacity. Stargate's focus is to ensure the United States stays at the forefront of artificial intelligence by facilitating high-performance computing requirements. It also features other partners such as SoftBank and Microsoft. did not disclose specific locations or details of funding for the new facilities. The initial Stargate data center in Abilene, Texas, has already begun powering some of OpenAI's AI compute workloads. Oracle started delivering Nvidia GB200 chips for the site last month, with parts operational for several weeks. The additional capacity will push Stargate's development to more than 5 gigawatts, running over 2 million chips.

SoftBank and OpenAI's Stargate aims building small data center by year-end, WSJ reports

(Reuters) -Stargate, a multi-billion-dollar effort by ChatGPT's creator OpenAI, SoftBank and Oracle to supercharge the U.S.' AI ambitions is now setting the more modest goal of building a small data center by the end of the year, likely in Ohio, the Wall Street Journal reported on Monday. In January, U.S. President Donald Trump hosted top tech CEOs at the White House to highlight the $500 billion Stargate Project, which would create more than 100,000 jobs in the country. SoftBank and OpenAI, which jointly lead the joint venture, have been at odds over crucial terms of the partnership, including where to build the sites, the report said, citing people familiar with the matter. In a joint statement, the two companies told Reuters they were moving "with urgency on site assessments" and were also advancing projects in multiple states. When the project was unveiled, the companies involved, along with other equity backers of Stargate, had committed $100 billion for immediate deployment, with the remaining investment expected to occur over the next four years. Oracle Chairman Larry Ellison said at the time that the first of the project's data centers was already under construction in Texas. Trump has prioritized winning the AI race against China and declared, on his first day in office, a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity online. (Reporting by Preetika Parashuraman in Bengaluru; additional reporting by Rishabh Jaiswal; Editing by Alan Barona)

Oracle, OpenAI to add 4.5 gigawatts data center capacity for Stargate venture

(Reuters) -Cloud firm Oracle and OpenAI plan to develop 4.5 gigawatts of additional data center capacity, the ChatGPT developer said on Tuesday. The commitment is part of their Stargate joint venture, which aims to establish the United States as a leader in artificial intelligence amid intensifying global competition. Including a data center site in Abilene, Texas, the expansion will bring the total data center capacity under construction to more than 5 gigawatts and is expected to operate more than 2 million chips, the company said. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid)

OpenAI, Oracle deepen AI data center push with 4.5 gigawatt Stargate expansion

(Reuters) - OpenAI and Oracle will develop another 4.5 gigawatts of data center capacity, expanding a tie-up that has promised hundreds of billions of dollars in infrastructure investment to keep the U.S. ahead in the global artificial intelligence race. The ChatGPT maker did not disclose the locations or funding details for the new facilities in Tuesday's announcement. The move builds on the Stargate initiative, an up to $500 billion and 10 gigawatt project that also includes Japanese technology investor SoftBank Group and is setting up its first AI data center in Abilene, Texas. OpenAI, as well as its backer Microsoft, are among the technology companies pouring billions of dollars on data centers to power generative AI services such as ChatGPT and Copilot that require huge amounts of computing power. The growing use of AI in sensitive sectors such as defense, as well as China's push to catch up, has made the nascent technology a top priority for U.S. President Donald Trump, who unveiled Stargate at the White House in January. The new data centers will bring Stargate's total capacity under development to more than 5 gigawatts, which will run on over 2 million chips, OpenAI said in a blog post, adding that the tie-up now expects to exceed its initial commitment. Oracle and SoftBank did not immediately respond to requests for comment. The White House also did not immediately respond to a request for comment. Analysts have raised doubts about the venture's ability to secure the funding, including $100 billion for immediate deployment. In January, xAI owner Elon Musk, dismissed the group, saying "they don't actually have the money." OpenAI and SoftBank will each commit $19 billion to fund Stargate, reports said in January. The Wall Street Journal reported on Monday the two companies have been at odds with each other and Stargate is now setting a more modest goal of building a small data center at end-2025, likely in Ohio. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zahid and Mrigank Dhaniwala)

OpenAI partners with Oracle to scale up Stargate AI data centers: All you need to know

The two companies will work together to develop 4.5 gigawatts (GW) of additional data center capacity. OpenAI has announced a major partnership with Oracle to expand its Stargate AI infrastructure in the US. The two companies will work together to develop 4.5 gigawatts (GW) of additional data center capacity. This investment is said to create over 1,00,000 new jobs in the US, including construction workers, electricians, data center operators, and local service roles. With this new addition, OpenAI's total Stargate data center capacity under development will exceed 5 GW which will power over 2 million chips. "This significantly advances our progress toward the commitment we announced at the White House in January to invest $500 billion into 10 gigawatts of AI infrastructure in the US over the next four years," the company said in a blogpost. With the strong progress with partners like Oracle and SoftBank, OpenAI now expects to go beyond this original target. Also read: YouTube removes nearly 11,000 propaganda channels linked to China and Russia Construction at Stargate I in Abilene, Texas, is underway, and some parts of the site are up and running. Oracle has started delivering Nvidia GB200 racks to the facility, which OpenAI is now using for early AI training and testing. The Abilene site has already created thousands of jobs, with more expected as the project continues. Along with Oracle, OpenAI is also working closely with SoftBank to rethink how data centers are designed for AI. These partnerships are crucial to support the growing demand for powerful computing systems needed for next-generation AI development. Also read: Google Pixel 9 Pro XL price drops by Rs 30,000 on Flipkart: Check deal details here OpenAI's latest agreement with Oracle shows that the company is serious about building the infrastructure needed to support the future of AI.