OpenAI is facing difficulties in building the massive data centers required to support its ambitious plans for artificial intelligence (AI). Despite initial investments of $100 billion, conflicts with key partner SoftBank have led to scaled-back ambitions and a single small data center project in Ohio this year.
However, OpenAI has announced an expansion with Oracle, aiming to build 4.5 gigawatts of capacity on top of an existing project in Abilene, Texas. CEO Sam Altman acknowledged the company’s thirst for computing power is straining supply chains and will require innovative solutions.
OpenAI is diversifying its partnerships, including governments and new investors like SoftBank and Microsoft. The company’s OpenAI for Countries project aims to bring nations into AI development, while also securing U.S. funding for data centers.
As global demand for data center capacity grows 23% per year through 2030, other companies like Meta, Google, and xAI are racing to meet their own demands. Elon Musk’s xAI company has announced plans for a massive Colossus supercluster, while Anthropic is seeking flexible partnerships to secure funding.
CEO Sam Altman emphasized the need for continued investment in AI computing power, stating that “we must get more ambitious about compute” and make AI accessible to many people.
Source: https://www.axios.com/2025/07/23/openai-data-centers-stargate