Oracle agrees to deploy additional 4.5GW of Stargate data centers following discussions with OpenAI, pending successful completion of financial formalities
In a significant move for the artificial intelligence (AI) industry, tech giant Oracle has pledged a staggering $40 billion to OpenAI's Stargate initiative, a project aimed at developing AI-focused data center capacity across the United States. This investment forms part of a broader $500 billion commitment made by OpenAI, Oracle, and partners to establish up to 10 gigawatts (GW) of AI data center capacity over the next four years.
The announcement marks an expansion of the Stargate initiative, with an additional 4.5 GW of data center capacity now under development. This expansion is expected to create over 100,000 jobs and drive significant growth in AI infrastructure in regionally diverse U.S. locations.
The initial investment by OpenAI and its partners was reported to be $19 billion apiece, as per a report in January. However, the exact funding for the infrastructure remains undisclosed in the latest announcement. What is known is that Oracle's commitment will be used for AI data center infrastructure and the procurement of 2 million Nvidia GB200 superchips.
Oracle began delivering the first Nvidia GB200 racks last month, and OpenAI recently started running early training and inference workloads. The capacity provided by Oracle is enough for more than two million GPUs. The Stargate I datacenter in Abilene, Texas, where these developments are taking place, is partially operational, according to an update provided by OpenAI.
It's worth noting that the Wall Street Journal previously reported that SoftBank was not involved in the current buildout of the Stargate I datacenter, seemingly contradicting an earlier report from Bloomberg. However, the exact nature of SoftBank's involvement in the Stargate initiative remains unclear.
OpenAI expects to bring in $12.7 billion in revenues this year. The company's investment in the Stargate initiative is part of a commitment to invest $500 billion into 10 GW of AI infrastructure in the US over the next four years.
Oracle's 2025 fiscal year saw the company net $57.4 billion in revenues and invest $21 billion in capital expenditures. The exact timeline for the deployment of the remaining capacity at the Stargate I datacenter is not specified. Our website reached out to Oracle and OpenAI for comment, but we have not received a response yet.
This ambitious project is set to reshape the AI landscape in the United States, with the potential to create thousands of jobs and drive technological advancements in the field. As more details emerge, it will be interesting to see how this collaboration between OpenAI, Oracle, and other partners unfolds.
- Oracle's $40 billion commitment to OpenAI's Stargate initiative will be used for AI data center infrastructure and the procurement of 2 million Nvidia GB200 superchips.
- The Stargate I datacenter in Abilene, Texas, where these developments are taking place, is partially operational and expected to drive significant growth in AI infrastructure in regionally diverse U.S. locations.
- OpenAI's investment in the Stargate initiative is part of a broader $500 billion commitment made by OpenAI, Oracle, and partners to establish up to 10 gigawatts (GW) of AI data center capacity over the next four years.
- The capacity provided by Oracle is enough for more than two million GPUs, and OpenAI recently started running early training and inference workloads at the datacenter.
- As part of its broader commitment, OpenAI expects to bring in $12.7 billion in revenues this year and reshape the AI landscape in the United States, potentially creating thousands of jobs and driving technological advancements in the field.
