OpenAI and Oracle partnered to develop 4.5 gigawatts of additional Stargate AI data centre capacity in the US, advancing the project’s goal to invest $500 billion into 10 gigawatts of AI infrastructure over the next four years.

OpenAI stated in a blog post the expansion will create over 100,000 jobs, support industrial growth and help advance US AI leadership. It did not say where the new data centres will be located or provide details on the funding arrangement.

The partnership with Oracle, combined with the existing Stargate I site in the US state of Texas, will bring the total Stargate AI data centre capacity under development to over 5 gigawatts, which will run on over 2 million chips.

AI rivals xAI, Google, Meta Platforms and Microsoft are in a race to invest billions of dollars on compute infrastructure by building large data centre clusters to train their AI models.

In May, OpenAI, Oracle, SoftBank Group, Nvidia, and Cisco teamed to build a Stargate AI campus in the United Arab Emirates (UAE), marking the first international deployment of the joint venture first announced in January by US President Donald Trump.

When announcing the joint venture, Trump stated the investment could grow to $500 billion over the next four years.

The consortium pledged to initially spend $100 billion on Stargate, but xAI owner Elon Musk stated the group did not “actually have the money”.

Softbank, OpenAI fallout
The Wall Street Journal reported this week SoftBank and OpenAI have disagreed on where to build the new data centre sites. As a result, Stargate scaled down its plans to focus on building a small data centre in the US state of Ohio by the year-end.

Founder of industry blog Radio Free Mobile Richard Windsor stated in a research note he is “starting to have concerns about the viability of a partnership between OpenAI and SoftBank as they appear to have difficulty in working together”.

“Now that Stargate is at the stage where it has to start putting money into the ground, problems are emerging which have delayed the project and mean that its ultimate scope and scale may be a tiny fraction of that which was originally envisaged,” he noted.