Digital Event Horizon
OpenAI has announced a $30 billion per year partnership with Oracle to expand its Stargate AI infrastructure platform in the US, bringing over 5 gigawatts of additional capacity under development. The expansion is a significant step forward for AI infrastructure development in the country, and represents a major milestone in OpenAI's ambitious funding promise.
OpenAI is partnering with Oracle to expand Stargate AI infrastructure platform in the US. Oracle will contribute 4.5 gigawatts of additional data center capacity, bringing total capacity under development to over 5 gigawatts. The expansion is part of OpenAI's $500 billion commitment to invest in AI infrastructure over four years. The project is expected to generate jobs across construction and operations roles. Stargate will consume enough power to power roughly 4.4 million American homes.
OpenAI, a leading artificial intelligence (AI) research and development company, has announced a significant partnership with Oracle to expand its Stargate AI infrastructure platform in the United States. As part of this deal, Oracle will be contributing 4.5 gigawatts of additional data center capacity for OpenAI's Stargate, bringing the total capacity under development to over 5 gigawatts.
The expansion is a key component of OpenAI's $500 billion commitment announced at the White House in January, aimed at investing in AI infrastructure over four years. According to OpenAI CEO Sam Altman, "Easy to throw around numbers, but this is a gigantic infrastructure project." This statement highlights the enormity and complexity of the Stargate expansion, which will require significant investment and resources.
The new agreement between OpenAI and Oracle marks an important milestone in the development of Stargate, a concept that 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.
The Abilene data center in Texas, where Stargate is being developed, has made significant progress since its construction began six months ago. Oracle started delivering Nvidia GB200 racks to the facility last month, and OpenAI reports that it has started running early training and inference workloads to support "next-generation frontier research."
The expansion of Stargate is expected to generate jobs across construction and operations roles, including direct full-time positions, short-term construction work, and indirect manufacturing and service jobs. According to estimates, the 5 gigawatts of total capacity will consume enough power to power roughly 4.4 million American homes.
Despite early skepticism about OpenAI's financial position and ability to deliver on its ambitious funding promise, the company has made significant progress in recent months. In May, TechCrunch reported that OpenAI had secured $19 billion in funding for Stargate, which was a crucial step towards bringing the project to fruition.
Critics such as Ed Zitron, a tech writer and frequent OpenAI critic, have questioned the feasibility of OpenAI's financial position and ability to deliver on its promises. However, with the partnership with Oracle and the ongoing progress at the Abilene data center, there is increasing confidence that Stargate will be a success.
The expansion of Stargate marks an important step forward for AI infrastructure development in the United States. As AI technology continues to evolve and play an increasingly significant role in various industries, it is essential to develop robust and scalable infrastructure to support its growth. OpenAI's partnership with Oracle represents a major milestone in this effort, and its success will have far-reaching implications for the future of AI research and development.
Related Information:
https://www.digitaleventhorizon.com/articles/OpenAIs-Stargate-AI-Infrastructure-Expansion-A-30-Billion-Per-Year-Partnership-with-Oracle-deh.shtml
https://arstechnica.com/ai/2025/07/openai-and-partners-are-building-a-massive-ai-data-center-in-texas/
Published: Wed Jul 23 19:00:31 2025 by llama3.2 3B Q4_K_M
