OpenAI Is Walking Away From Expanding Its Stargate Data Center With Oracle

OpenAI is reportedly backing away from expanding its AI data center partnership with Oracle because newer generations of Nvidia GPUs may arrive before the facility is even operational. CNBC reports: Artificial intelligence chips are getting upgraded more quickly than data centers can be built, a market reality that exposes a key risk to the AI trade and Oracle's debt-fueled expansion. OpenAI is no longer planning to expand its partnership with Oracle in Abilene, Texas, home to the Stargate data center, because it wants clusters with newer generations of Nvidia graphics processing units, according to a person familiar with the matter. The current Abilene site is expected to use Nvidia's Blackwell processors, and the power isn't projected to come online for a year. By then, OpenAI is hoping to have expanded access to Nvidia's next-generation chips in bigger clusters elsewhere, said the person, who asked not to be named due to confidentiality. In a post on X, Oracle called the reports "false and incorrect." However, it only said existing projects are on track and didn't address expansion plans. CNBC notes: "Oracle secured the site, ordered the hardware, and spent billions of dollars on construction and staff, with the expectation of going bigger."

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