OpenAl to expand computer power partnership Stargate (4.5 gigawatts) in new Oracle data center deal

OpenAI Expands Strategic Partnership with Oracle, Secures 4.5 GW of Computing Power for Advanced AI Development

In a significant move reflecting the soaring demands of artificial intelligence technology, OpenAI has announced a substantial expansion of its collaboration with Oracle Corporation. As part of its ambitious Stargate initiative, OpenAI will lease approximately 4.5 gigawatts of data center capacity across the United States—highlighting the scale of computing resources required to power next-generation AI solutions.

This extraordinary energy commitment is comparable to the output of a nuclear reactor, capable of supplying electricity to roughly 3.4 million homes. Such a vast allocation underscores the intensive infrastructure needed to construct and operate large-scale AI models and applications.

The Stargate project, launched publicly in January at a White House event, signifies a strategic partnership where OpenAI leverages Oracle’s extensive data centers to meet its computational demands. Oracle has already established a significant facility in Abilene, Texas, developed in collaboration with Crusoe, specifically to support OpenAI’s efforts.

To accommodate the increased demand, Oracle plans to expand its data center footprint nationwide. Initial developments include upgrading the existing Texas facility from 1.2 gigawatts to approximately 2 gigawatts of power capacity. Additionally, new data centers are in the planning stages across multiple states, including Michigan, Wisconsin, Wyoming, and potentially New Mexico, Georgia, Ohio, and Pennsylvania.

This expansion is part of a broader effort to support large-scale AI innovation, with Oracle recently announcing a monumental $30 billion contractual agreement with an unnamed client, set to commence in the 2028 fiscal year. Industry insiders suggest that the Stargate deal constitutes a significant portion of this substantial contract, emphasizing the growing importance of cloud infrastructure in advancing AI technology.

As artificial intelligence continues to evolve, partnerships like these underscore the crucial role of massive computing power—highlighting a future where innovation hinges on unprecedented levels of digital infrastructure investment.