In a massive leap for global AI infrastructure, OpenAI and Oracle are expanding their $500 billion Stargate project to surpass 5 gigawatts (GW) of AI compute power. Meanwhile, Elon Musk’s xAI is setting even more ambitious goals, aiming to deploy the equivalent of 50 million H100 chips within five years.
OpenAI Adds 4.5 GW in Oracle-Backed Deal
On Tuesday, OpenAI CEO Sam Altman confirmed the addition of 4.5 GW of power to the Stargate initiative, bringing the total to over 5 GW — enough to power over 2 million AI chips.
“This is a gigantic infrastructure project,” Altman said in an X post, sharing progress at the Abilene, Texas site.
The Stargate expansion significantly exceeds OpenAI’s initial White House commitment, with Altman hinting at a major scale-up in GPU deployment by the end of 2025. Oracle will be a key infrastructure partner in this push.
Musk: xAI Aims for 50M H100-Scale Compute Units
Shortly after OpenAI’s announcement, Elon Musk revealed xAI’s plan to build a compute network 500 times more powerful than today’s largest AI clusters.
“xAI’s goal is 50 million H100-equivalent units online in 5 years,” Musk posted.
Colossus 2, xAI’s upcoming supercomputer, is already slated to use 550,000 Nvidia GB200 chips, roughly equal to 5.5 million H100s. Musk’s long-term vision would nearly 10x that deployment, dramatically shifting the landscape of AI competition.
Stargate Faces Growing Pains
Despite the high ambitions, the Stargate initiative — launched earlier this year by President Donald Trump — has run into early challenges, including internal disagreements between OpenAI and SoftBank.
According to the Wall Street Journal, the original $100 billion first-phase rollout has been scaled down to a single data center by year-end. However, the long-term goal remains intact: build a national AI infrastructure and create over 100,000 U.S. jobs.
AI Superpowers Take Shape
With OpenAI and xAI pushing AI boundaries in parallel, the next five years could redefine the global compute race. While OpenAI focuses on infrastructure scale, Musk’s xAI aims for energy-efficient AI dominance.
Together, these mega-projects underscore one thing: AI supremacy now hinges on power, chips, and compute — not just algorithms.
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