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

OpenAI has struck a deal 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 Bloomberg is reporting that Texas, Michigan, Wisconsin and Wyoming are all under consideration.

The ChatGPT maker says this new capacity is a part of the Stargate Project, and that together with its one GW campus 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 employ few full-time workers, 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 10 GW of AI infrastructure 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 new data centers and power agreements to sustain the growth of AI and power future models. Google recently closed a £3 billion deal to secure 3,000 megawatts of hydroelectric power, while Microsoft is planning to restart the nuclear power plants of Three Mile Island.

In a press release 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 offering massive tax incentives to land the projects.

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