OpenAI and Oracle to Add 4.5 Gigawatts of AI Data Centre Capacity Under $500 Billion Stargate Initiative
In a major move to strengthen U.S. leadership in artificial intelligence infrastructure, OpenAI and Oracle have announced plans to develop an additional 4.5 gigawatts of AI data centre capacity. This expansion builds on the ambitious Stargate initiative, a joint effort that could reach up to $500 billion in investment and aims to deliver 10 gigawatts of total capacity.
The new data centres will raise Stargate’s total under-development capacity to over 5 gigawatts, powered by more than 2 million AI chips, according to OpenAI’s official blog post. The company did not disclose the exact locations or financial specifics for the new facilities during Tuesday’s announcement.
What Is the Stargate Project?
Launched in January 2025 at the White House by U.S. President Donald Trump, the Stargate initiative is designed to counter China’s growing AI ambitions and ensure U.S. technological supremacy.
Key stakeholders include:
- OpenAI, the maker of ChatGPT
- Oracle, a leading cloud and database company
- SoftBank Group, the Japanese tech conglomerate
- Microsoft, OpenAI’s primary backer
The first Stargate AI supercenter is already being developed in Abilene, Texas.
Why It Matters: AI and the U.S. Infrastructure Race
Generative AI tools like ChatGPT, Copilot, and DALL·E require massive computing power, which in turn demands advanced infrastructure. By investing billions in high-capacity data centres, tech giants like OpenAI and Oracle are positioning the U.S. to maintain its edge in the global AI arms race. However, the road is not without obstacles.
Funding Questions and Project Headwinds
Despite the project’s ambitious scale, analysts remain sceptical about the venture’s ability to secure the full $500 billion in funding. Initial reports suggested that $100 billion would be deployed in the short term. However, delays and internal disputes may have slowed progress.
In January 2025, Elon Musk — founder of xAI and former OpenAI co-founder — publicly dismissed Stargate’s feasibility, stating:
“They don’t actually have the money.”
Additional funding updates include:
- OpenAI and SoftBank were each expected to contribute $19 billion, according to early 2025 reports.
- However, a new Wall Street Journal article from July 2025 reveals that tensions between the two companies have resulted in a scaling down of expectations.
- The revised plan reportedly includes building a smaller-scale data centre by late 2025, likely located in Ohio.
Oracle did not immediately respond to media inquiries, and the White House declined to comment on the latest developments.
Key Takeaways
| Initiative | Stargate Project |
|---|---|
| Partners | OpenAI, Oracle, SoftBank, Microsoft |
| Total Goal | 10 GW capacity / $500B investment |
| New Addition | 4.5 GW data centre capacity |
| Chips | Over 2 million AI processors |
| First Site | Abilene, Texas |
| New Site | Likely in Ohio (smaller-scale) |
| Project Concerns | Funding doubts, internal conflicts |
The Bigger Picture: AI Infrastructure as Strategic Power
With the global AI race intensifying, especially in defence, biotech, and finance, the Stargate initiative underscores how infrastructure is now a geopolitical asset. Nations are not only racing to develop the best models, they’re racing to build the best data centres that power them.
As AI grows more integrated into national security, economic growth, and daily life, initiatives like Stargate represent the strategic investments shaping the future of both technology and global power dynamics.
