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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.
OpenAI 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.
The Stargate initiative represents a large-scale infrastructure investment, potentially exceeding $500 billion over several years. Larry Ellison, co-founder and CTO of Oracle, said the company will have invested $30 billion by 2028 in cloud data centers compared to its competitors. This focus will solidify Oracle's position in cloud infrastructure supporting AI workloads.
OpenAI and SoftBank reportedly each pledged $19 billion toward Stargate’s funding in January. However, some industry analysts question the venture’s ability to secure immediate funding, particularly the $100 billion earmarked for deployment. Elon Musk publicly expressed skepticism about the project’s financial backing. Despite this, OpenAI expects the expansion to generate over 100,000 jobs in construction and operations in the U.S., although data centers traditionally employ fewer full-time staff.
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The increase in AI data centers indicates the surging need for increased computing, as next-generation AI models like ChatGPT and Microsoft Copilot require a massive amount of computing. The need for well-developed infrastructure grows as AI is increasingly used in industries such as defense. The Stargate project has been viewed as a revolutionary initiative similar to historical American infrastructure projects.
According to the experts, this rapid expansion in AI infrastructure on such a scale can foster new regulatory frameworks. Although Stargate primarily focuses on cloud computing, it also highlights shifts in regulatory and industrial environments related to AI technologies. The White House has not commented publicly on the recent expansion announcement, and Oracle and SoftBank have yet to respond to media inquiries.
This shift places OpenAI and Oracle in a privileged position regarding AI infrastructure growth. It highlights the current investments necessary to sustain the evolving computational demands of artificial intelligence in various industries. The Stargate is also crucial in ensuring that the U.S. remains competitive in global AI advancements.
