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OpenAI and Oracle Reunite to Develop 4.5 GW Stargate Data Center

TradingKeyJul 23, 2025 12:11 PM

TradingKey - On July 22, OpenAI announced that it has reached an agreement with Oracle to develop a 4.5-gigawatt Stargate data center in the United States. This ambitious project is expected to create over 100,000 jobs across the country.

According to the announcement, the Stargate will surpass a total capacity of 5 gigawatts, operating more than 2 million chips. OpenAI aims to exceed its initial commitment of investing $50 billion over the next four years to build a 10-gigawatt AI infrastructure in the U.S.

While the completion date and exact location of this new data center remain undisclosed, the development is anticipated to significantly benefit AI-related enterprises.

Additionally, the first data center within the Stargate project, Stargate I, located in Abilene, Texas, is currently under construction. Part of its facilities are already operational, having created thousands of jobs. Oracle began delivering the first batch of Nvidia GB200AI chips last month, and OpenAI has recently started running early training and inference workloads.

Notably, the new agreement between OpenAI and Oracle was secured without SoftBank's investment. Previous reports indicated that SoftBank's financing negotiations faced challenges due to uncertainties arising from global tariffs.

Nevertheless, OpenAI is still advancing its partnership with SoftBank. Both companies are conducting site assessments and redesigning data centers to support advanced AI applications.

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Reviewed byJane Zhang
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