OpenAI and Oracle ink deal to build massive Stargate data center, total project will power 2 million AI chips — Stargate partner SoftBank not involved in the project
Among the concerns raised about the Stargate project, which involves partnerships with OpenAI, Oracle, and SoftBank, were scarce details about infrastructure support. Little by little, the companies disclosed their intentions and, on Tuesday, OpenAI and Oracle announced plans to build an additional 4.5 gigawatts (GW) of Stargate data center infrastructure in the U.S., pushing OpenAI's total planned capacity beyond 5 GW. Interestingly, SoftBank is not involved in financing this buildout, despite being part of the Stargate project.
Under the terms of the plan announced in January, OpenAI, Oracle, and Softbank plan to build 20 data centers each measuring 500,000 square feet (46,450 square meters). However, it was unclear how they intended to power the data centers, as it does not look like the U.S. infrastructure has enough spare capacity to power the additional AI servers, cooling systems, and networking equipment used in AI data centers unless some sort of additional infrastructure is built.
The announced 4.5 GW of infrastructure indeed refers primarily to electrical power availability, which is among the limiting factors for AI development these days. OpenAI claims that the expanded infrastructure of 5 GW will enable its data centers to power over two million AI processors, though it does not disclose whether the infrastructure is meant to support 1.4 kW Blackwell Ultra processors or 3.6 kW Rubin Ultra processors. If a 5 GW infrastructure were to power only AI GPUs, then it could feed 3.571 million Blackwell Ultra or 1.388 million Rubin Ultra GPUs. However, AI accelerators typically consume only half of the entire data center's power, without taking into account power usage effectiveness (PUE), so the actual number of supported GPUs would be lower.
The new 4.5 GW-capable facilities may be built in states such as Texas, Michigan, Wisconsin, and Wyoming, though exact locations are still being finalized. This is in addition to an existing site under construction in Abilene, Texas, which OpenAI considers a proof-of-concept facility to ensure its ability to deploy infrastructure at scale and speed. OpenAI believes that lessons learned from Abilene will help with the execution of subsequent sites.
Parts of the Abilene facility — Stargate I — are now active as Oracle began installing server racks based on Nvidia's GB200 platform last month. OpenAI has begun utilizing this infrastructure to conduct early-stage AI training and inference tasks as part of its next-generation research initiatives.
Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
By Karen Freifeld (Reuters) -Two Chinese nationals were arrested in California and charged with illegally shipping tens of millions of dollars' worth of AI chips to China, including Nvidia H100s, the U.S. Justice Department said Tuesday. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported the advanced Nvidia chips and other technology to China from October 2022 through July 2025 without obtaining the required licenses from the U.S. Commerce Department, a criminal complaint says. According to the complaint, Geng and Yang's El Monte-based company, ALX Solutions Inc, was founded in 2022, shortly after the U.S. imposed sweeping export controls on technology to China and began to require licenses for the chips. A spokesperson for Nvidia declined comment. Over 20 shipments from ALX solutions went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China. ALX received a $1 million payment from a China-based company in January 2024 and other payments from companies in Hong Kong and China, not the freight forwarding companies. Nvidia H100s are advanced chips that can be used to train large language models and for other applications, such as developing self-driving cars and medical diagnosis systems. Records show that from at least August 2023 to July 2024, ALX Solutions bought over 200 Nvidia H100 chips from San Jose, Calif-based server maker Super Micro Computer, declaring that the end users were in Singapore and Japan. Super Micro did not immediately respond to a request for comment. In addition to Nvidia's H100s, the pair are accused of illegally shipping Nvidia video graphics cards known as PNY GE Force RTX 4090, which also require a license for export to China. Geng and Yang appeared in U.S. District Court in Los Angeles late Monday, according to the Justice Department. Geng, a permanent resident, was released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing on August 12. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 minutes ago
- Yahoo
Cathie Wood splurges $4.1 million on popular AI stock
Cathie Wood splurges $4.1 million on popular AI stock originally appeared on TheStreet. Cathie Wood just made a bold move again. As AI continues to sweep the investing narrative, she's doubled down on a stock that's essentially at the center of it all. Though it's far from being a new name for her, the size and timing of her bet say something different. 💵💰💰💵 The stock market's near all-time highs, and even with all the overvaluation chatter, Wood's conviction stands out. When Cathie Wood shells out so much cash at an AI heavyweight, she's not just stock picking, but making a clear statement. Real infrastructure, real profits, and zero hesitation. Why AI is more than a trend for Cathie Wood For Cathie Wood, AI isn't just a passing fad, but also a key pillar of ARK's investment strategy. AI is among the firm's five 'innovation platforms,' and Wood still feels we're in the early innings of what she calls 'the AI movement.' In ARK's Big Ideas 2025 report, she mapped out how smarter AI models and quicker chips could transform everything from diagnostics to robotaxis. The thesis is that AI isn't a vertical, but a foundational force that's set to revamp virtually every industry, from automated factories to financial instead of scattering bets, Wood looks to concentrate her capital in high-conviction bets she feels might double over a five-year window. Be it AI, robotics, DNA sequencing, or blockchain, ARK aims to back the bellwethers leading the step changes. Hence, her strategy is bold and volatile by design. Cathie loads up on Nvidia while selling stake in flying car stock Joby Cathie Wood's ARK Space Exploration & Innovation ETF just made a major move, speaking volumes about where she sees the near-term upside in AI. On August 4, the fund scooped up an additional $1.6 million worth of Nvidia () stock. The buying spree didn't stop there, with ARKQ (ARK Invest's autonomous tech fund) also adding a hefty $2.5 million of Nvidia stock the same bets underscore Wood's conviction in Nvidia as perhaps the most compelling play in AI infrastructure. Also in May, Wood dropped a head-turning $12.6 million into Nvidia across multiple ETFs, hailing it as the 'backbone of modern AI infrastructure.' However, it wasn't the only AI chip stock she's been loading up on. In the past few weeks, ARK added over $11 million of AMD stock, betting big on its MI300X GPUs and their growing market share in training and inference markets. She's even adding Tempus AI to the mix for a diagnostics and health care play. Nvidia's relentless data-center expansion and its robust position in both generative AI workloads and traditional GPU-accelerated workloads have positioned it as the unequivocal AI juggernaut. Additionally, the move reflects a long-term thesis that the demand for AI chips will continue to grow at a swift pace. But the rebalancing came with a tradeoff. That same day, ARKX trimmed its exposure to Joby Aviation, shedding roughly $3.8 million worth of stock. Though Joby's recent acquisition of Blade Air Mobility's passenger unit showed progress toward commercialization, Wood's team seems to be getting a lot more cautious. Regulatory hurdles and FAA certification remain wild cards, and that effectively means taking some money off the table. The strategy is classic ARK, which involves doubling down on high-conviction winners while keeping speculative plays on a tighter leash. Nvidia's 2025 run shows no signs of slowing Nvidia's been on a tear in 2025, and the momentum isn't fading. The stock is up close to 30% year to date as of early August, after a sharp rebound from its April lows. It's important to note that Nvidia recently became the first U.S. company to crack the $4 trillion market cap mark, as it dominates the AI hardware of that surge is linked to the jaw-dropping expansion in its data center business. In February, Nvidia reported fiscal Q4 sales of $35.6 billion from the segment, up 93% year over year. It followed that up with another massive 73% jump in Q1, with sales hitting $39.1 billion. Moreover, Nvidia's H100 and H200 GPUs continue to anchor AI infrastructure across hyperscale cloud providers. International tailwinds have helped, too. More News: Veteran analyst spots unexpected star in Apple's earnings report Nvidia avoids White House crackdown; Trump softens on AI giant Jim Cramer sounds off on tariffs, hot economy, and interest rate pressures Nvidia recently got the green light to ship its new H20 chips to China and locked in fresh orders with TSMC. At the same time, it has been cooking up some AI partnerships in Europe and the Middle East, flexing its global reach. Hence, with AI set to drive north of 10% of U.S. GDP in 2025, Nvidia isn't just riding the wave; it's defining it. Cathie Wood splurges $4.1 million on popular AI stock first appeared on TheStreet on Aug 5, 2025 This story was originally reported by TheStreet on Aug 5, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
4 minutes ago
- Entrepreneur
Goldman Sachs Data Shows AI's Unemployment Impact
AI has led to an increase in unemployment for 20- to 30-year-old tech workers, according to Goldman Sachs. AI is eliminating jobs in the U.S., especially for young tech workers just starting in their careers. In a Monday Goldman Sachs note, obtained by Business Insider, the investment firm wrote that since ChatGPT was introduced in November 2022, the tech sector's share of U.S. employment, which had just hit its highest point, has been declining. Unemployment is especially high for 20- to 30-year-olds aiming to work in the tech sector, the report found. Since the start of 2024, the unemployment rate for that group has risen by nearly 3%, more than four times greater than the overall rate. Goldman Sachs says that the increase is an indicator that AI is starting to take over white-collar work, starting at the entry level. Related: Here Are the Odds of Landing a Summer Internship at Goldman Sachs or JPMorgan The bank's Chief Economist, Jan Hatzius, estimated in the note that AI will replace 6% to 7% of all U.S. workers within the next decade. However, he predicted that the unemployment rate would only grow by a "manageable" 0.5% due to AI, because affected workers would shift to other industries. AI isn't just increasing unemployment by taking over entry-level tech jobs — it is also causing mass layoffs. According to a Tuesday report shared by the coaching company Challenger, Gray & Christmas with CBS, AI has directly caused more than 27,000 job cuts in the private sector since 2023. "The industry is being reshaped by the advancement of artificial intelligence," Challenger, Gray & Christmas told CBS. Related: Is AI the Reason for Your Layoff? New York Becomes the First State to Require Companies to Disclose If So. Tech leaders are also sounding the alarm on the technology's ability to replace jobs. Dario Amodei, the 42-year-old CEO of AI startup Anthropic, predicted in May that AI could eliminate half of all entry-level, white-collar work and result in unemployment rising to as much as 20%. AI will affect white-collar industries like technology, law, and finance, Amodei said. Nobel Prize winner Geoffrey Hinton, 78, had a similar prediction. Hinton, who is often called the Godfather of AI because of his pioneering work on neural networks, forecast in June that "AI is just going to replace everybody" in white-collar jobs. "I think for mundane intellectual labor, AI is just going to replace everybody," Hinton said at the time. Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.
