Oracle and OpenAI partner on 4.5 gigawatt data center expansion

Published 22/07/2025, 11:28
© Reuters.

Investing.com -- Oracle (NYSE:ORCL) and OpenAI have formed a partnership to develop 4.5 gigawatts of additional Stargate data center capacity in the United States.

This expansion, combined with the existing Stargate I site in Abilene, Texas, will bring OpenAI’s total AI data center capacity under development to over 5 gigawatts, which will run more than 2 million chips.

The investment advances OpenAI’s commitment announced at the White House in January to invest $500 billion into 10 gigawatts of AI infrastructure in the U.S. over four years. The company now expects to exceed this initial target due to momentum with partners including Oracle and SoftBank (TYO:9984).

The new 4.5 gigawatt expansion is projected to create over 100,000 jobs across construction and operations roles in the U.S. These include direct full-time positions for data center operations, construction roles such as specialized electricians, and indirect jobs in manufacturing and local services.

At the Stargate I site in Abilene, construction is progressing with parts of the facility already operational. Oracle began delivering the first Nvidia (NASDAQ:NVDA) GB200 racks last month, and OpenAI has started running early training and inference workloads. The site has created thousands of jobs from more than 20 states, with more expected as operations grow.

OpenAI’s partnership with SoftBank is also advancing, with site assessments underway and efforts to redesign data centers for advanced AI. Microsoft (NASDAQ:MSFT) will continue providing cloud services for OpenAI, including through the Stargate platform.

The Stargate initiative represents OpenAI’s comprehensive AI infrastructure platform, which includes partnerships with Oracle, SoftBank, and CoreWeave, as well as international investments in U.S. infrastructure through OpenAI for Countries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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