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

OpenAI and Oracle (ORCL.N) 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 US ahead in the global artificial intelligence race.

The ChatGPT maker did not disclose the locations or funding details for the new facilities in its 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 (9984.T) and is setting up its first AI data center in Abilene, Texas.

OpenAI, as well as its backer Microsoft (MSFT.O), 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 US 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 did not immediately respond to a Reuters request for comment, while the White House declined to 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 that 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.