PANews reported on March 10th, citing CNBC, that OpenAI has abandoned its plans to expand its Stargate data center in Abilene, Texas, with Oracle, and is insteadPANews reported on March 10th, citing CNBC, that OpenAI has abandoned its plans to expand its Stargate data center in Abilene, Texas, with Oracle, and is instead
OpenAI plans to discontinue its cooperation with Oracle's Texas data center expansion, shifting its core focus to Nvidia's next-generation chips.
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PANews reported on March 10th, citing CNBC, that OpenAI has abandoned its plans to expand its Stargate data center in Abilene, Texas, with Oracle, and is instead seeking to deploy a new generation of Nvidia GPU clusters. The report notes that the existing Abilene project plans to use Nvidia Blackwell chips and is expected to be powered up in a year, while OpenAI hopes to use more powerful next-generation chips at other locations by then. Oracle currently relies heavily on debt to finance its AI infrastructure expansion, with over $100 billion in debt and negative free cash flow. Its partner, Blue Owl, has also refused to fund the new facilities. Analysts suggest that the faster pace of GPU upgrades compared to data center construction cycles could result in infrastructure being outdated by the time it reaches production.
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