OpenAI and Oracle have announced a major leap forward in AI infrastructure, revealing plans to build 4.5 gigawatts of new data center capacity as part of the ongoing Stargate initiative. According to the joint announcement on Tuesday, the expansion is expected to create over 100,000 jobs in construction and operations across the U.S.
OpenAI stated that this development marks a significant step toward its previously announced goal, made at the White House in January, to invest $500 billion in U.S.-based AI infrastructure over the next four years. Thanks to growing support from partners like Oracle and SoftBank, OpenAI now believes it will surpass that target.
With this expansion, the Stargate project’s total planned capacity now exceeds 5 gigawatts, expected to power around 2 million chips, a massive boost for AI capabilities.
A Competitive Race in AI Infrastructure
This move reflects a broader trend in the tech industry, as major players race to build the next generation of AI infrastructure. Companies like Google, Amazon Web Services (AWS), and Microsoft are also pouring billions into data center construction across the U.S. In just the last few months:
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Google committed over $25 billion to build data centers in Pennsylvania.
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AWS pledged $100 billion toward its data center operations.
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Microsoft announced an $80 billion investment in new AI infrastructure.
Still, some experts remain skeptical about the pace and scale of these announcements. Reports suggest that many proposed data centers may never be built, with interconnection requests currently outpacing actual construction by up to 10 times. A recent analysis by London Economics International questioned whether some of the more aggressive forecasts are truly realistic.
Stargate: A Growing Coalition
Stargate is a collaborative effort that includes OpenAI, Oracle, Microsoft, SoftBank, Nvidia, and others. Initially valued at $500 billion, the project could grow even larger. OpenAI CEO Sam Altman emphasized the scale of the endeavor, posting on X: “It’s easy to throw around numbers, but this is a gigantic infrastructure project. We are planning to significantly expand the ambitions of Stargate past the $500 billion commitment we announced in January.”
This announcement follows OpenAI’s recent launch of ChatGPT Agent, a tool that combines its new Operator framework with deep research capabilities to perform complex tasks, underscoring the company’s rapid push into next-gen AI development.