Stargate is back on - OpenAI and Oracle unveil massive data center expansion plans in major AI push

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Project Stargate is back underway with $30bn deal

OpenAI Project Stargate illustration
(Image credit: OpenAI)
  • Oracle's mystery $30 billion cloud deal is to support OpenAI and Project Stargate
  • The project's first site, Stargate I, is already partly operational
  • SoftBank, Microsoft and others continue to play a role

After weeks of speculation both with regards to Oracle's mystery cloud deal and potential delays to Project Stargate, OpenAI has confirmed the project is indeed still going ahead.

The deal, worth $30 billion per year, was revealed in a SEC filing by Oracle on June 30, but the company failed to mention who the big contract had been struck with.

We now know the contract involves 4.5 gigawatts of data center capacity, which equates to two Hoover Dams' worth of power or the equivalent of four million homes.

OpenAI confirms Stargate is still on

This brings the AI giant's total Oracle data center capacity up to five gigawatts, which is enough to power two million chips.

The huge deal with Oracle marks a major step forward in OpenAI's journey to 10 gigawatts, as outlined in its four-year, $500 billion Project Stargate strategy.

OpenAI confirmed its first site, Stargate I, will be located in Abilene, Texas, with Oracle and OpenAI jointly building it.

According to the company, parts of Stargate I are already operational, with early AI training and inference underway using Nvidia GB200 superchips.

The first site has already generated "thousands" of jobs, with OpenAI hoping to support 100,000 workers as part of the broader scheme.

Responding to reports that discussions had stalled between SoftBank and OpenAI amid disagreements, the ChatGPT-maker confirmed: "Our partnership with SoftBank is moving forward with strong momentum."

"Over the past six months, growing interest in Stargate has helped shape and expand our vision for this effort," OpenAI added. Despite broadening its list of providers and partners, the company added an interesting caveat: "Microsoft will continue to provide cloud services for OpenAI, including through Stargate."

Microsoft used to have exclusivity, but that all changed when OpenAI started to bring other cloud giants onboard.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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