OpenAI, Oracle & SoftBank Roll Out $500B “Stargate” AI Data Center Plan
According to Reuters, the Stargate alliance plans to build five new AI data center sites across the U.S. in collaboration between OpenAI, Oracle, and SoftBank. The new sites will be located in Shackelford County, Texas; Dona Ana County, New Mexico; Lordstown, Ohio; Milam County, Texas; and a Midwest site (undisclosed).
The initiative intends to deploy ~7 gigawatts of infrastructure, as part of the broader goal to reach 10 gigawatts with total investment nearing $500 billion over time. The project is expected to generate around 25,000 on-site jobs and enhance regional compute capacity for AI workloads.
OpenAI’s CEO emphasized: “AI can only fulfill its promise if we build the compute to power it.” The arrangement includes debt financing and chip leasing agreements to support hardware deployment.
Key Highlights
Plan to build 5 new AI data centers under the “Stargate” initiative.
Target deployment of ~7 gigawatts initially, aiming for 10 GW capacity.
Estimated cost: $500 billion in total investment.
Locations include Texas, New Mexico, Ohio, and an undisclosed Midwest site.
Expected to create ~25,000 jobs across the facilities.
Why This Matters
Massive compute scale: The scale of investment is unprecedented—reflects how central compute infrastructure is becoming to AI progress.
Partnership leverage: Combining the strengths of OpenAI, Oracle, and SoftBank creates synergy in hardware, cloud, and capital.
Regional opportunities: Each location will become a mini-AI hub, impacting local economies, power grids, and infrastructure.
Investment & financing model: The mix of debt, chip leasing, and large capital outlays shows how future AI infrastructure is being financed.
Source
Reuters – Full Article
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