Oracle and OpenAI ink significant agreement for constructing a large-scale AI data center
In a significant development, OpenAI, the leading artificial intelligence (AI) research company, has announced plans to invest up to $100 billion in 10 gigawatts of AI infrastructure. This ambitious project, known as the Stargate initiative, aims to establish a network of AI data centers across the United States.
One of the key components of this initiative is the Texas data center, which is projected to house up to 400,000 Nvidia Corp. GB200 Grace Blackwell accelerators. Oracle, a strategic partner in this endeavour, is constructing one of the Texas data center campuses. Recently, Oracle has begun moving GB200-equipped server racks into the Texas data center.
Each GB200 chip incorporates two Blackwell B200 graphics cards and a 72-core Grace central processing unit, making it an ideal choice for AI training and inference workloads. OpenAI researchers are already utilising this hardware for their projects.
OpenAI has secured a quarter of the $40 billion funding round led by SoftBank, with SoftBank Group Corp. becoming the company's largest backer this year. However, specific details about the partnership between OpenAI and SoftBank, including the role of SB Energy, have not been finalised. Reports suggest that SoftBank is anticipated to contribute up to three-quarters of the remaining sum.
The city where OpenAI is likely to build a small data center by the end of the year remains unnamed, but it is mentioned that OpenAI has 10 data center projects underway in Texas as part of the Stargate initiative, suggesting Texas as a probable location. Interestingly, OpenAI has also set a goal of constructing a small data center by the end of the year, likely located in Ohio.
The UK is now a key strategic partner for OpenAI. The company's partnership with Oracle Corp. to develop 4.5 gigawatts of data center capacity in the United States is a testament to this.
However, the Stargate project has not been without its challenges. Reports suggest a sharp reduction in the scope of the project's initial phase, despite the long-term goals growing more ambitious. SoftBank Group Corp. is involved in ongoing disagreements with OpenAI regarding the Stargate project.
Despite these challenges, the Stargate initiative represents a significant step forward in the development and deployment of advanced AI technologies. With its ambitious goals and high-profile partnerships, OpenAI continues to push the boundaries of what is possible in the field of AI.
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