OpenAI is evaluating 16 US states as potential locations for its massive Stargate artificial intelligence data center project. The company views the initiative as urgent to outrun China in the global AI competition, citing concerns about authoritarian versus democratic AI.
Stargate is a $500 billion private sector investment in AI infrastructure, backed by companies including SoftBank and Oracle. Initially, around 16 states have shown interest in hosting Stargate data centers, with Texas serving as the flagship site. Construction of the Abilene data center has begun, with OpenAI anticipating its use later this year.
However, a new low-cost Chinese AI model called DeepSeek has raised questions about the assumption that massive AI progress requires specialized data centers like those being built by Stargate. DeepSeek’s researchers claim to have trained one of their models on less sophisticated chips at a fraction of the cost of American models, potentially disrupting the industry’s long-held understanding of AI development.
OpenAI is considering campus expansions in multiple locations, with an expected footprint of five to 10 sites. The company plans to announce more site selections in the coming months as its Stargate project moves forward.
Source: https://www.reuters.com/technology/openai-eyeing-more-data-centers-texas-other-states-stargate-bloomberg-news-2025-02-06