OpenAI, Oracle expand $500B Stargate spend as Musk unveils bold xAI plan

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OpenAI expands Stargate with Oracle to surpass 5 GW of AI power, while Elon Musk outlines plans for xAI to deploy 50 million H100-scale units in 5 years.

OpenAI announced a 4.5 gigawatt expansion in partnership with Oracle to power future AI development.

The deal, part of OpenAI’s long-term vision to deploy 10 gigawatts of compute capacity across the US, will add to its existing Stargate I facility in Abilene, Texas, and push the project beyond its original commitment made at the White House in January, the firm said on Tuesday.

“This is a gigantic infrastructure project,” OpenAI CEO Sam Altman posted on X, sharing images of the Abilene site. In an earlier post, he confirmed that over 1 million GPUs will be online by year-end, and joked, “Now they better get to work figuring out how to 100x that.”

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