OpenAI Partners with Oracle and SoftBank to Launch Five New AI Data Centers Across the U.S.

OpenAI has joined forces with Oracle and SoftBank to launch five new AI data centers across the U.S. under its Stargate initiative, significantly boosting its infrastructure capacity and job creation potential.

Short Summary:

• OpenAI, Oracle, and SoftBank unveil plans for five new AI data centers.
• The initiative, part of Stargate, aims for nearly 7 gigawatts of total capacity.
• Over 25,000 jobs expected as a result of this massive infrastructure investment.

In a groundbreaking announcement today, OpenAI has revealed its collaboration with tech giants Oracle and SoftBank to establish five new AI data centers across the United States as part of the ambitious Stargate project. This initiative is set to enhance OpenAI’s infrastructure, targeting a total power capacity nearing 7 gigawatts, which is roughly equivalent to the output of seven large nuclear reactors. The investment associated with this venture is projected to exceed $400 billion over the next three years, paving the way for the ultimate goal of $500 billion and a 10-gigawatt capacity by the end of 2025, well ahead of schedule.

This strategic move follows a significant agreement between OpenAI and Oracle announced in July, which intends to develop up to 4.5 gigawatts of additional Stargate capacity. Sam Altman, CEO of OpenAI, emphasized the importance of advancing AI infrastructure, stating,

“AI can only fulfill its promise if we build the compute to power it. That compute is the key to ensuring everyone can benefit from AI and to unlocking future breakthroughs.”

This alignment highlights the growing demand for robust AI capabilities and reflects the partnership’s commitment to meeting that need.

The newly planned data centers will be located in:

• Shackelford County, Texas
• Doña Ana County, New Mexico
• A yet-to-be-determined site in the Midwest
• Lordstown, Ohio
• Milam County, Texas

A total of more than 25,000 onsite jobs are anticipated to materialize from these developments, along with tens of thousands of additional jobs nationwide. This initiative doesn’t just signify a leap in AI capabilities; it’s a comprehensive effort to boost local economies through job creation and infrastructure development.

The Lordstown site is particularly exciting, as SoftBank has commenced groundbreaking for an advanced data center there, projected to become operational as early as next year. Meanwhile, the Milam County site is being developed in collaboration with SB Energy, a subsidiary of SoftBank, that focuses on delivering renewable energy resources for rapid facility deployment. These sites are designed to significantly improve scalability, reduce costs, and provide high-performance computing resources more efficiently.

The comprehensive selection process for these sites commenced in January 2023, during which OpenAI, Oracle, and SoftBank scrutinized over 300 proposals from 30 states — demonstrating a meticulous approach to infrastructure development. Today marks a significant milestone as the first set of selections is publicly announced, with more locations on the horizon as the investment commitment reaches new heights.

According to Clay Magouyrk, CEO of Oracle, the collaboration is pushing the company to expand the Oracle Cloud Infrastructure (OCI) footprint rapidly.

“Oracle’s reliable, scalable, and secure AI infrastructure is helping OpenAI rapidly scale its business,”

Magouyrk noted, reflecting the growing urgency and need for scalable AI capabilities. The investments in the OCI are structured to deliver cost-effective solutions for AI training and inference, ensuring that the demand for computational power is met.

The flagship Stargate facility in Abilene, Texas, is already active and rapidly progressing, expected to enhance OpenAI’s AI research and development initiatives. The facility’s early training and inference workloads will utilize newly installed NVIDIA GB200 racks that have been operational since June.

Masayoshi Son, Chairman and CEO of SoftBank Group Corp, expressed his beliefs regarding the partnership’s transformative potential, stating,

“Stargate is harnessing SoftBank’s innovative data center design and energy expertise to deliver the scalable compute that powers AI’s future.”

This comment underscores the belief that a collaborative approach to infrastructure can create a sustainable paradigm for future advances in AI technology.

The Stargate initiative initially gained presidential attention in January 2023 when it was unveiled alongside President Trump at the White House. The project is part of a broader strategy to propel U.S. leadership in artificial intelligence, positioning the country to compete against global counterparts such as China. Notably, David Sacks, the White House AI czar, has previously labeled this effort as part of an “AI race,” emphasizing the urgency for the U.S. to retain its technological edge.

In light of recent developments, OpenAI’s broad push to establish AI infrastructure is further bolstered by additional partnerships. Recently, it announced intentions to collaborate with Nvidia for a staggering $100 billion investment to acquire cutting-edge AI processors, which will help to support even more expansive data center infrastructure. The forward-looking vision of these companies represents a significant convergence of resources aimed at solidifying a stronghold in the competitive landscape of AI.

With the announcement of the Stargate project, questions relating to environmental considerations and the impact on local communities have risen. Jonathan Koomey, a noted scholar from UC Berkeley, has raised concerns regarding the potential for the tech industry to overlook its environmental commitments while pursuing expansive data center capacity. While he acknowledges the promise of OpenAI’s significant investments, he questions,

“I would question the sense of urgency,”

alluding to the complexities and potential repercussions of rapid tech expansion.

Despite concerns, local support for the Abilene project is strong. Mayor Weldon Hurt alongside Senator Ted Cruz showcased their backing during a recent press briefing, emphasizing the importance of regulatory measures that facilitate technological advancement. Senator Cruz articulated a clear message, stating,

“We are in a race with China… and this is why Stargate is so important.”

This aligns with broader national interests and the shared vision of advancing AI technologies for economic and practical benefits.

As OpenAI continues to explore its Stargate vision, the outlook appears promising, with plans already unfolding for additional projects in the UK and UAE. With the ongoing partnerships positioned to capitalize on global market opportunities, the paradigm for AI infrastructure will likely evolve to meet consumer and business needs in unprecedented ways.

In closing, as we witness the confluence of these powerful partnerships shaping the future of AI, we recognize that these advancements will not only reshape the technology landscape but also necessitate a rethinking of traditional approaches to infrastructure and operational efficiency. OpenAI’s collaboration with Oracle and SoftBank underscores a comprehensive strategy to establish a foundation that not only propels AI research and application but also opens doors to new career opportunities and innovations. The journey ahead holds exciting potential—both for OpenAI’s objectives and for those eager to harness the transformative power of AI in various domains, including content creation using tools like Autoblogging.ai.