Plug in your chargers, people. OpenAI and Oracle are rekindling the sweeter-than-an-overheated-laptop-on-full-load partnership.
The giants of AI have made a significant announcement regarding a 4.5-GW power expansion for data centers under the Stargate initiative, which will be located at the already active 1-GW power site in Abilene, Texas.
This brings the overall capacity to over 5 GW for computation, enough juice to power over 2 million AI chips (think of Nvidia’s GB200s) for the next generation of AI training, everything in a hyperspace timeline.
So, What’s the Deal?
- The new 4.5-GW expansion increases from a 5-GW initiative to 10 GW, which aspires to gain for both fronts of stateside and global dominance.
- Goodbye, cloud provider-these days, they are jeopardizing infrastructure leasing to OpenAI. Oracle deals with hardware and data-center ops; OpenAI is about AI magic.
- SoftBank is so strangely absent in this recent money scene; expansion is all about Oracle and OpenAI.
Where’s It All Going?
The following data center sites? Texas, Michigan, Wisconsin, Wyoming, and possibly one in Ohio are all candidates. Abilene’s facility is already making waves, server racks humming, with early AI training generating buzz.
How Big Is Big?
- Oracle leasing storage of more than 4.5 GW to OpenAI is one of the largest cloud deals ever struck, with whispers suggesting this figure could reach $30 billion a year by 2028.
- Shares soared to record highs and celebrations began on Wall Street, with analysts predicting 50% growth in Oracle’s cloud business between 2028 and 2029 as a result.
- A $40 billion order for approximately 400,000 Nvidia GB200 chips is reportedly in Oracle’s pocket, enough firepower to create widespread concern about grid power.
Why This Matters
This is beyond capacity, a geopolitical flex. Stargate is America’s megaproject to outcompute the rest of the world.
With the Ostentation CN moving into the realm of diversification, OpenAI is now collaborating with Oracle, Google, SoftBank, and CoreWeave, among others, while also abandoning its sole reliance on Azure.
There will be more than 100,000 jobs created by the construction and operations engineers, energy engineers, among others.
With a massive 4.5-GW addition to the Stargate engine by OpenAI and Oracle, the data center’s capacity has grown to over 5 GW, sufficient to power 2 million AI chips.
The $30 billion-a-year cloud deal, this GPU shopping spree by Oracle, and the diversification away from Microsoft all point towards a new era.
Just imagine a US data-centre powerhouse, global AI dominance, and economies scaled like never before.
Whether you’re on Team AI or Team “that’s a lot of power,” one thing is clear: Stargate is not just a dusty sci-fi relic. It’s happening, and it’s electrifying.
