In this articleORCL your favorite stocksCREATE FREE ACCOUNTwatch now1:1501:15OpenAI CFO Sarah Friar: 'More compute, more revenue' in response to concern on Oracle, Nvidia dealsClosing BellABILENE, Texas — OpenAI and Oracle are betting big on America's AI future, bringing online the flagship site of the $500 billion Stargate gram, a sweeping infrastructure push to secure the compute needed to power the future of artificial intelligence.The debut site in Abilene, Texas, 180 miles west of Dallas, is up and running, filled with Oracle Cloud infrastructure and racks of Nvidia chips.The data center, which is being leased by Oracle, is one of the most notable physical landmarks to emerge from an unprecedented boom in demand for infrastructure to power AI.
Over $2 trillion in AI infrastructure has been planned around the world, according to an HSBC estimate this week.OpenAI is leading the way.In addition to the $500 billion Stargate ject, the startup on Monday announced an equity investment deal with Nvidia that will add an estimated $500 billion worth of data centers in the coming years.
Since 2019, Microsoft has invested billions of dollars in OpenAI, viding loads of access to Azure credits.
Additionally, OpenAI contracts with smaller cloud companies for additional compute capacity and help operating its infrastructure.One building on the Abilene site is operational while another is nearly complete.
The campus has the potential to ultimately scale past a gigawatt of capacity, OpenAI finance chief Sarah Friar told CNBC. That would be enough electricity to power 750,000 U.S.
s.The data center construction plans are important enough that Nvidia CEO Jensen Huang personally engaged in last-minute negotiations with OpenAI CEO Sam Altman over the weekend to get in on the action, CNBC reported earlier on Tuesday."People are starting to recognize just the sheer scale that will be required," Friar said.
"We're just getting going here in Abilene, Texas, but you'll see this all around the United States and beyond."The scale of the ject's construction was necessary to supply the amount of compute required to operate OpenAI's models, Friar said."What we see today is a massive compute crunch," she said.
"There's not enough compute to do all the things that AI can do."watch now3:2103:21OpenAI's Sarah Friar: 'Full ecosystem' needs to come together to address compute crunchCheckA bold bet on AI infrastructureOpenAI, Oracle and SoftBank, which is helping fund the ject, announced on Tuesday five additional Stargate sites across Texas, New Mexico, Ohio and an additional unnamed site in the Midwest.
That brings the size of the initiative to nearly 7 gigawatts and more than $400 billion of investment over the next three years, which includes an existing $300 billion agreement between OpenAI and Oracle.While companies Oracle are helping fund the data center construction, OpenAI will ultimately be the one to pay for the computing capacity as an operating expense, Friar said.
Although Nvidia is putting in equity to jumpstart the ject, Friar said the chipmaker will get paid for all graphics cessing units (GPUs) that it vides as those chips get deployed.Friar said OpenAI will generate $13 billion in revenue this year, and that the company plans to help pay for the construction using its own cash flow and debt financing.The Stargate name will refer to all OpenAI infrastructure jects going forward, CNBC reported this week.
Together with CoreWeave and other partners, the companies say they are ahead of schedule to meet their full 10-gigawatt commitment by the end of 2025.Friar told CNBC the shovels going into the ground today are laying foundations for compute that won't come online until 2026, starting with Nvidia next-generation Vera Rubin chips.Data center buildings are under construction during a tour of the OpenAI data center in Abilene, Texas, U.S., Sept.
23, 2025.
Shelby Tauber | Reuters"No one in the history of man built data centers this fast," Friar said, adding that the entire ecosystem has to work together to meet demand.Critics have questioned the circular funding behind Stargate -- OpenAI committing hundreds of billions of dollars to jects while suppliers Nvidia are also directly into those same buildouts.Friar said history shows that nology booms require bold infrastructure bets."When the internet was getting started, people kept feeling , 'Oh, we're over-building, there's too much,'" Friar said.
"Look where we are today, right?"The ject also carries political weight. OpenAI and Oracle first unveiled Stargate alongside President Donald Trump at the White House in January.
Friar called Trump "the president of this AI era," pointing to Washington's role in framing the nology as both an economic engine and a national security priority.
Trump was briefed on the Nvidia investment into OpenAI during a state visit to the U.K.
earlier this month.Oracle says the ject will employ more than 6,000 construction workers daily and der nearly 1,700 long-term jobs.In a paper published Tuesday OpenAI's infrastructure plans, the company wrote that its data center buildout could help reshape the American power grid with new nologies and help the U.S.
exert global influence.-- CNBC's Kif Leswing contributed to this story.WATCH: OpenAI CFO: Need partners Oracle and Microsoft to meet demandwatch now2:0602:06OpenAI CFO: Need partners Oracle and Microsoft to meet demandCheck