OpenAI is building five new U.S. data centers under its $500 billion Stargate initiative, dramatically expanding AI infrastructure with Oracle, SoftBank and Nvidia partnerships as it bets on scale to win the global AI race. (Source: Image by RR)

OpenAI Partners With Oracle and SoftBank to Develop New Data Center Sites

OpenAI announced plans to build five new data centers across the United States under its Stargate initiative, expanding the project’s total planned capacity to nearly 7 gigawatts—the equivalent of seven nuclear reactors. The expansion, backed by partners Oracle and SoftBank, reflects CEO Sam Altman’s push to ensure the U.S. does not “fall behind” in the AI race. Three of the sites will be developed with Oracle in Texas, New Mexico, and the Midwest, while two more in Ohio and Texas will be built with SB Energy, SoftBank’s renewable energy arm.

The new projects, along with a 600-megawatt expansion at the flagship Abilene, Texas site, are projected to create more than 25,000 onsite jobs. Oracle is building out eight massive data halls in Abilene that will eventually house more than 400,000 GPUs. OpenAI executives , as reported in wired.com, say the company reviewed more than 300 proposals from 30 states before selecting the new sites, underscoring the scale and competitiveness of the infrastructure drive. President Donald Trump has tied Stargate to his administration’s AI action plan, which prioritizes rapid buildouts and light-touch regulation to compete with China.

The initiative has grown into a sprawling set of partnerships, including a new $100 billion agreement with Nvidia to build 10 gigawatts of additional capacity, powered by next-generation Vera Rubin GPUs. Nvidia’s system is expected to go live in 2026, dwarfing even the Oracle projects. Altman described the Nvidia collaboration as a way to “expand on the Stargate ambitions.” While supporters like Senator Ted Cruz have hailed the project as essential to America’s AI leadership, critics warn about environmental tradeoffs, soaring hardware costs, and whether sheer scale is still the best path forward, citing competitors like China’s DeepSeek that have achieved breakthroughs with leaner infrastructure.

Despite those concerns, Stargate has strong political and local support, especially in Texas. Altman and allies frame the project as vital to national security and economic competitiveness, comparing it to the U.S. race for energy dominance in previous eras. Abroad, OpenAI has already announced Stargate initiatives in the UK and UAE, reflecting its global ambitions. Yet the complexity of the deals, reliance on partners, and unproven bet that “bigger is better” in AI development leave open questions about whether the massive infrastructure gamble will ultimately pay off.

read more at wired.com