OpenAI and Oracle have agreed to build an additional 4.5 gigawatts of data-centre capacity under their Stargate AI infrastructure venture raising the total capacity to over 5 GW, enough to power more than 2 million AI chips nationwide. This expansion marks a significant upswing in Stargate’s pace and ambition.

Building on a Record Partnership

Originally announced in January 2025 alongside SoftBank, Stellgate aims to invest US $500 billion and hit 10 GW in AI computing capacity by 2029. With this latest 4.5 GW boost, Stargate is well on its way exceeding the initial build-out and signaling strong momentum from OpenAI and Oracle.

Abilene, Texas: Proof of Concept

The first active facility, Stargate I, in Abilene, Texas, has already begun delivering value:

  • 🏗️ Oracle has installed Nvidia GB200 server racks
  • 🔄 OpenAI has started training and inference workloads
  • 👷‍♂️ The site has already generated thousands of construction and operations jobs

This live facility is validating the model and helping shape next steps for future data-centre sites.

What the 4.5 GW Means in Real Terms

  • Powering AI at scale: More than 2 million AI chips, supporting frontier research and products
  • Economic boost: Projected 100,000+ jobs in construction, electrical, operations, and indirect services
  • Geographic spread: Future data centres may land in several U.S. states beyond Texas

This level of investment positions Stargate and Oracle as key players challenging Amazon and Microsoft in cloud AI infrastructure.

Oracle’s Investment and the Market Response

Oracle plans to spend over US $40 billion through FY2028, including $35.7 billion on Nvidia chips, anticipating annual cloud revenues of ~$30 billion from this deal by 2028.

While analysts expect short-term cash-flow pressure evidenced by a 2–3% drop in the company’s stock the long-term payoff is seen as transformative for Oracle’s positioning in the high-stakes AI race.

Strategic Implications of the Expansion

  1. Solidifying U.S. AI dominance: Strengthening national leadership in foundational AI technology
  2. Diversifying AI compute capacity: Reducing dependence on a single provider while boosting resilience
  3. Driving innovation ecosystems: Job creation and local investment in advanced digital infrastructure

What Comes Next

As Stargate expands beyond Abilene, questions remain:

  • ⛽ Where the next 4.5 GW of data centres will be built
  • 🏗️ Infrastructure readiness: Power, cooling, and supply-chain capabilities
  • 🤝 Partnership evolution: How Oracle, SoftBank, Microsoft and CoreWeave coordinate in the larger Stargate buildout

Conclusion: Scaling AI Infrastructure at the National Level

With this massive expansion, OpenAI and Oracle are not just keeping pace they’re accelerating. The 4.5 GW addition brings Stargate closer to its 10 GW goal, energizes job creation, and signals a new era of large-scale, purpose-built AI infrastructure.