OpenAI announced Thursday that it is evaluating U.S. states as potential locations for data centers for its ambitious Project Stargate, which aims to ensure the United States’ lead in the global artificial intelligence race. Chris Lehane, OpenAI’s chief global affairs officer, said the project is critical to ensuring that AI development remains democratic and open, rather than under authoritarian control.
Stargate, a joint venture backed by SoftBank, OpenAI, Oracle and other investors, is expected to receive up to $500 billion in AI infrastructure investment. A large portion of this investment, $100 billion, will be put into use immediately, with the rest to come online over the next few years. Texas has been designated as the flagship location for Stargate data centers. The first data center, under construction in Abilene, is expected to be operational later this year.
Previously, the rise of DeepSeek, a Chinese AI model, challenged the conventional wisdom that large, specialized data centers are needed for AI development. DeepSeek’s use of cheaper chips sparked investor concerns, leading to a sharp drop in the value of tech stocks, including a record $593 billion loss for leading AI chip maker Nvidia.
OpenAI is considering building data centers in about 16 states and plans to expand the Stargate network to five to 10 campuses in the coming months.
