OpenAI, alongside Oracle and SoftBank, has announced plans to create several AI data centers within the U.S, starting with a major project in Texas.
This collaboration, known as The Stargate Project, will initially receive $100 billion investment with expected funding to total $500 billion over four years. The project promises to generate hundreds of thousands of jobs and position America as a leader in AI.
Microsoft, Arm and Nvidia are tech partners for Stargate. Middle East AI fund MGX joins SoftBank in investment, marking their first public deal with OpenAI.
These data centers potentially being home to OpenAI’s chips, a project that the company is developing aggressively with renowned semiconductor firms Broadcom and TSMC. SoftBank, already a supporter of OpenAI, has a financial commitment set to allow OpenAI staff to offer shares in a tender.
Beyond the job creation and AI progression, the Stargate Project plans to help re-industrialize the United States and fortify the U.S.’s national security.
The first Stargate location is set for Abilene, Texas. Construction estimates hover around $3.4 billion. OpenAI states that more national sites are under consideration as the definitive contracts are coming into place.
Some critics argue that such large-scale data center projects may not generate as many jobs as promised and may pose environmental challenges due to high water and power usage.
Despite the critique, data centers are essential for the growing AI industry and high investments continue, potentially reaching over $250 billion in coming years, according to a McKinsey report.
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