OpenAI CEO Sam Altman has partnered with Oracle to enhance the Stargate initiative, adding 4.5 gigawatts of datacenter capacity in the U.S. This collaboration boosts Oracle’s total contribution to at least five gigawatts, sufficient for over two million GPUs. Altman emphasized this project accelerates their commitment to invest $500 billion in AI infrastructure over four years, a pledge initially announced at the White House in January.
However, funding details remain vague, particularly regarding the estimated $100 billion required for the GPUs alone. OpenAI and SoftBank’s reports suggest $19 billion each for the initiative, despite OpenAI expecting only $12.7 billion in revenue this year. The rollout of the capacity may be gradual, contingent on market demand. Furthermore, the project is expected to create over 100,000 jobs, albeit many may only be temporary. Updates indicate early operations at Stargate I in Texas, with Oracle investing $40 billion to deploy Nvidia superchips.
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