OpenAI & Oracle Join Forces to Unleash 4.5GW AI Powerhouse – The Next Tech Arms Race Begins

Tech giants collide as OpenAI and Oracle plug into a staggering 4.5GW of fresh AI compute capacity. This isn’t just an upgrade—it’s a full-scale infrastructure war declaration.

Why 4.5GW matters

That’s enough juice to power 3 million homes—or train next-gen LLMs that’ll make ChatGPT look like a pocket calculator. The cloud providers are scrambling to keep pace as AI’s energy demands outstrip small nations.

The silicon gold rush

Oracle’s cloud muscle meets OpenAI’s algorithmic firepower in a deal that’ll send Nvidia’s stock into another gamma squeeze. Wall Street analysts are already pencil-whipping ‘AI data center REITs’ into their next pitch decks.

Bottom line: The AI industry just dropped its ‘hold my server rack’ moment—while traditional VCs are still trying to mint ‘web5’ startups. The future runs on megawatts, and these guys bought the whole damn grid.

OpenAI moves fast with Oracle while SoftBank stalls

This new build is being rolled out under OpenAI’s internal Stargate project, but SoftBank isn’t part of this round. The AI giant made it clear that SoftBank isn’t backing this stage of development, even though they were in on the earlier $500 billion announcement. Back in May, Bloomberg reported that SoftBank was running into financing problems tied to wider global economic tension, including concerns around tariffs.

As for the existing Stargate facility in Abilene, OpenAI said it’s already producing compute power. Part of the building is now live and running actual training workloads. Oracle has delivered the first Nvidia GB200 racks, and machines are already up.

“We feel pretty good about our ability to MOVE quickly on this because in many regards, Abilene was that beta test to prove out that you could build these at scale and at speed,” said Chris Lehane, OpenAI’s vice president of global policy.

Bloomberg also reported earlier this month that OpenAI will rent the new capacity from Oracle rather than build and operate it directly. This means Oracle handles the infrastructure, while Altman’s firm focuses on the AI. With the additional sites, the company says its total compute operations will run on over 2 million chips, likely using more of the GB200s already being tested in Texas.

Another big number: 100,000 jobs. OpenAI said this construction wave will lead to more than one hundred thousand new roles tied to both building and running the data centers.

That’s a surprising change, considering data centers typically don’t require large numbers of full-time staff once built. This figure suggests a major short-term labor push around planning, construction, power systems, and delivery.

D.C. office to open as OpenAI builds political ties

Aside from infrastructure, OpenAI is setting up a permanent base in Washington, D.C. The company confirmed it will open its first office in the capital early next year. Right now, about 30 employees work from a co-working space in the city, but that setup is ending. The D.C. office will be used to manage OpenAI’s interactions with government officials, lawmakers, and federal agencies.

CEO Sam Altman is scheduled to speak at a Federal Reserve event in D.C. on Tuesday, highlighting the shift toward federal engagement. This comes just after the company introduced a product called OpenAI for Government in June and disclosed it had received a contract worth up to $200 million from the U.S. Department of Defense.

OpenAI said the D.C. location will also house a new lab called The Workshop. This space is designed for nonprofit leaders, educators, and policymakers to get hands-on with its tech. They’ll be able to preview new tools, take part in training, and speak directly with the company’s team.

“The space will be used to preview new technology, offer trainings and bring together experts,” a spokesperson said Monday.

As of now, OpenAI holds offices in San Francisco, New York, Seattle, London, Paris, Tokyo, and Singapore. The company was valued at $300 billion earlier this year and continues expanding its physical and political presence across the globe.

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