The infrastructure will be key to the Stargate project, an ambitious network of AI-powered data centers aimed at transforming the global technology landscape.
Oracle has confirmed an investment of $40 billion to acquire 400,000 NVIDIA GB200 chips, intended for OpenAI’s new data center in Abilene, Texas, according to the Financial Times. This massive acquisition is part of the ambitious Stargate project, a strategic alliance between OpenAI, Oracle, SoftBank, and MGX (Abu Dhabi), which aims to deploy several mega data centers on U.S. soil over the next four years.
The Abilene campus, currently under construction, will be the first of this network and is expected to have a total capacity of 1.2 gigawatts (GW), spread across eight buildings. The first phase, set to begin in June 2024, will include two buildings with over 200 megawatts (MW) of capacity and is expected to be operational in the first half of 2025. The second phase, which will start in March 2025, will add six additional buildings and another 1 GW, with plans to be operational by mid-2026.
Oracle has signed a 15-year lease to operate at the site, which is being developed by Crusoe Energy in collaboration with Oracle, on land owned by Lancium.
Multi-billion Dollar Financing and National and International Expansion
The financial backing mainly comes from JPMorgan, which has provided two loans totaling $9.6 billion, including a recently announced tranche of $7.1 billion. Additionally, Crusoe and Blue Owl have contributed $5 billion in capital, reinforcing the scale and ambition of the project.
OpenAI plans to extend Stargate beyond Texas. The company has explored locations in 16 U.S. states, including California, New York, Florida, and Virginia, and is already considering international expansions. In fact, part of the recently announced AI Campus UAE-U.S. in the United Arab Emirates will function as a “Emirati Stargate.” OpenAI has also launched the Stargate for Countries initiative, aiming to establish up to 10 regional mega data centers in collaboration with foreign governments.
Infrastructure for a New Era of AI
The deployment of these facilities responds to the growing computational needs of large-scale artificial intelligence models. With each campus designed to support at least 1 GW of load, Stargate promises to become one of the largest AI infrastructures on the planet.
This investment from Oracle solidifies its role as a strategic partner for OpenAI while ensuring preferential capacity to operate cloud services driven by advanced artificial intelligence. For NVIDIA, it also represents a boost at a time marked by geopolitical restrictions on chip exports to China.
Stargate not only marks a new phase for OpenAI but could also reshape the global balance regarding high-performance computing and access to industrial-scale AI resources.
via: sdxcentral