OpenAI Expands Stargate Project

OpenAI is expanding its Stargate AI project with plans to establish five data centre sites across the United States. This initiative aims to bolster US leadership in AI development and ensure its open and democratic progression. The project, backed by investors including SoftBank and Oracle, anticipates investments reaching up to $500 billion for AI infrastructure. A significant portion, $100 billion, is slated for immediate deployment.

The initial site, currently under construction in Abilene, Texas, is expected to commence operations later this year. OpenAI is evaluating potential locations in approximately 16 states, with intentions to broaden the Stargate network to between five and ten campuses in the coming months. This expansion follows the emergence of Chinese AI models utilising cheaper chips, raising concerns among investors and impacting tech stock values.

Oracle and OpenAI have reportedly entered into an agreement to develop 4.5 gigawatts of additional Stargate data centre capacity in the US, with a projected investment of around $300 billion, primarily for infrastructure development. This multi-year agreement is expected to start later this decade but has not yet been formally detailed.