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HomeNews & Current EventsOpenAI and Oracle Boost AI Infrastructure with Major Stargate...

OpenAI and Oracle Boost AI Infrastructure with Major Stargate Data Center Expansion

TLDR: OpenAI and Oracle have announced a significant expansion of their Stargate AI data center project, adding 4.5 gigawatts of capacity in the U.S. This move, part of a broader $500 billion commitment to U.S. AI infrastructure, aims to create over 100,000 jobs and solidify America’s leadership in artificial intelligence.

In a landmark announcement on July 22, 2025, artificial intelligence leader OpenAI and cloud computing giant Oracle revealed a substantial deepening of their collaboration on the ‘Stargate’ project, committing to develop an additional 4.5 gigawatts (GW) of AI data center capacity in the United States. This expansion is a critical step towards fulfilling a previously stated commitment to invest $500 billion into 10 GW of AI infrastructure across the U.S. over the next four years, an initiative first unveiled at the White House in January.

The new agreement with Oracle, combined with the existing Stargate I site in Abilene, Texas, will elevate OpenAI’s total Stargate AI data center capacity under development to over 5 GW. This massive infrastructure is designed to power more than 2 million chips, providing the immense computational resources necessary for advanced AI development and deployment.

OpenAI emphasized the multifaceted benefits of this significant investment. The company stated, “This investment will create new jobs, accelerate America’s reindustrialization, and help advance U.S. AI leadership.” Furthermore, they highlighted that the expansion “marks a major milestone for Stargate, OpenAI’s AI infrastructure platform and long-term vision to deliver the benefits of AI to everyone.” The project is projected to generate over 100,000 jobs, encompassing roles in construction, operations, and various indirect sectors such as manufacturing and local services.

Stargate is defined as OpenAI’s overarching AI infrastructure platform, a comprehensive initiative that includes ongoing data center partnerships with key players like Oracle, SoftBank, and CoreWeave, alongside international investments through ‘OpenAI for Countries.’ Microsoft will continue to serve as a crucial cloud services provider for OpenAI, including support for the Stargate initiative.

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OpenAI expressed confidence in exceeding its initial infrastructure targets, attributing this positive outlook to the strong momentum gained from partnerships with companies like Oracle and SoftBank. The ambitious undertaking of Stargate is designed to capitalize on the historic opportunities presented by AI, with strong support from partners, governments, and investors globally, including recognition from the White House regarding AI infrastructure’s vital role in driving innovation, economic growth, and national competitiveness.

Dev Sundaram
Dev Sundaramhttp://edgentiq.com
Dev Sundaram is an investigative tech journalist with a nose for exclusives and leaks. With stints in cybersecurity and enterprise AI reporting, Dev thrives on breaking big stories—product launches, funding rounds, regulatory shifts—and giving them context. He believes journalism should push the AI industry toward transparency and accountability, especially as Generative AI becomes mainstream. You can reach him out at: [email protected]

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