OpenAI Expands Stargate Project: Five New AI Data Centers with Oracle and SoftBank

OpenAI is accelerating its expansion of artificial intelligence infrastructure by partnering with Oracle and SoftBank to build five new Stargate data centers across the United States. This development significantly increases Stargate’s operational capacity, projecting a total of seven gigawatts—enough electricity to supply over five million homes.

Locations and Partners of the Expansion

The new Stargate data centers are strategically positioned in several regions. Three sites are in collaboration with Oracle: Shackelford County, Texas; Doña Ana County, New Mexico; and a location in the Midwest that remains undisclosed. SoftBank is involved in two additional sites: one in Lordstown, Ohio, and another in Milam County, Texas. This blend of geographic distribution and diversified partnerships underscores OpenAI’s intent to scale AI capabilities while securing key infrastructure partnerships.

Strengthening AI Infrastructure

This expansion is part of OpenAI’s broader mission to support the training and deployment of increasingly sophisticated AI models. Scaling data center capacity is essential as AI workloads intensify, requiring not only more computational power but also more advanced hardware. In an announcement earlier this week, it was revealed that OpenAI will also receive a $100 billion investment from Nvidia to purchase cutting-edge AI chips and construct even more facilities.

Deep Founder Analysis

Why it matters

For the startup ecosystem, the rapid expansion of AI-centric infrastructure signals a pivotal shift: access to vast computational resources is becoming a foundational layer for innovation. Just as cloud computing sparked the SaaS boom, a new wave of startups may emerge—built on top of, or in partnership with, these large-scale AI platforms. Startups focused on advanced machine learning, automation, and generative AI will now have unprecedented opportunities for experimentation and scaling without needing to own the hardware themselves.

Risks & opportunities

One major opportunity is the potential for deep partnerships between infrastructure providers and early-stage ventures—similar to how AWS fostered startup growth in the 2010s. However, the increasing concentration of compute power among a few industry giants poses risks to openness and competition. Startups may face barriers to access or cost volatility if partnerships become less favorable or if capacity is consumed by a handful of large players. Those building AI tooling, security, or data management layers should track how this infrastructure is allocated and priced.

Startup idea or application

This trend presents fertile ground for a startup that acts as an AI compute broker or marketplace. Imagine a platform where enterprises and startups can easily bid for, allocate, or share excess data center resources—similar to spot markets for cloud servers. This concept could help democratize access, increase infrastructure efficiency, and mitigate vendor lock-in, while providing new pathways for AI-driven businesses to scale quickly and flexibly.

The Larger AI Ecosystem: What’s Ahead

OpenAI’s announcement fits into a broader narrative of rapid infrastructure investment throughout the AI sector. Companies like Google and Microsoft are also investing heavily in large-scale data centers to remain competitive.
For more on infrastructure deals shaping AI, see Google Completely Revamps Play Store Experience with Advanced AI Features and Why California’s SB 53 Could Become a Turning Point for AI Regulation in the DeepFounder blog.

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