Openai, Oracle, Softbank Announce 5 New US Data Center Sites, Taking Stargate Capacity To 7GW

OpenAI, Oracle, and SoftBank announced plans on Tuesday to establish five new artificial intelligence data centers in the United States as part of their $500 billion Startgate project.

The ChatGPT-maker and Oracle will open three new sites in Shackelford County, Texas, and Dona Ana County, New Mexico, as well as an undisclosed site in the Midwest. OpenAI, Japan's SoftBank, and a SoftBank affiliate will open two sites in Lordstown, Ohio, and Milam County, Texas.

The ChatGPT-maker stated that the new sites, the Oracle-OpenAI site expansion in Abilene, Texas, and the ongoing projects with CoreWeave will bring Stargate's total data center capacity to nearly 7 gigawatts and more than $400 billion in investment over the next three years.

Stargate had set the target of 10-gigawatt capacity when the project was announced in January.

"AI can only fulfill its promise if we build the compute to power it," OpenAI CEO Sam Altman said in a company blog post on Tuesday. "We're already making historic progress toward that goal through Stargate and moving quickly not just to meet its initial commitment, but to lay the foundation for what comes next."

The development comes close on the heels of Nvidia announcing a $100 billion investment commitment and plans to supply AI chips to OpenAI. Noted tech analyst, Wedbush's Dan Ives, called the deal a "validation moment" for the ongoing AI revolution.

Tech companies are investing billions of dollars into data centers and related AI infrastructure, forecasting massive compute demand in the coming years as AI tools and services become more widely used.

On Stocktwits, the retail sentiment for OpenAI, a private company, was 'extremely bullish' as of the last reading. The view was 'bullish' for Nvidia, and 'extremely bullish' for Oracle.

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