OpenAI Supercharges Stargate as Musk Targets 50M AI Chips

byrn
By byrn
3 Min Read


OpenAI has partnered with Oracle to boost its artificial intelligence (AI) computing capacity by an additional 4.5 gigawatts (GW).

The deal, published on July 22, expands the existing Stargate I site in Abilene, Texas. In January, OpenAI shared plans to roll out 10 GW of AI infrastructure across the US, but this new step pushes that target even further.

OpenAI CEO Sam Altman shared the news on X, and called it a “gigantic infrastructure project”. He added that over one million GPUs are expected to be online by the end of 2025.

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This new agreement brings the Stargate project’s total development pipeline to more than 5 GW. That amount of power could support over two million AI chips.

Altman mentioned that OpenAI is planning to exceed its original $500 billion commitment for Stargate.

Following OpenAI’s announcement, Elon Musk revealed that xAI is aiming to reach the equivalent of 50 million H100 AI chips within five years. According to a post by another X user, that would be 500 times more computing power than last year’s most powerful AI supercomputer.

xAI’s upcoming Colossus 2 system is expected to run on 550,000 GB200 chips, which together match about 5.5 million H100s.

Additionally, xAI recently signed a $200 million agreement with the US Department of Defense. What does the deal cover? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.




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