Key insights
- OpenAI and Oracle are proceeding with the $16 billion Stargate data center campus, a significant AI infrastructure project. While Sam Altman's ambitious spending plans have previously caused market jitters, the company is now outlining a more measured compute spend strategy towards 2030. This development signals continued investment in AI, potentially boosting related tech sectors and cloud providers, though the scale of future commitments warrants monitoring.
OpenAI and Oracle are holding an official groundbreaking for the $16 billion Stargate campus in Saline Township, Michigan, on Monday.
CNBC’s David Faber interviewed key figures in the buildout throughout the day.
What you need to know:
The data center project, which is being developed by Related Digital, began construction roughly three months ago. The companies said the exterior of one building is almost complete.
In January 2025, President Donald Trump unveiled the Stargate project alongside OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son and Oracle Chairman Larry Ellison during an event at the White House. The companies pledged to deploy $500 billion over four years to build out new artificial intelligence infrastructure in the U.S.
Altman rattled markets by inking a flurry of multi-billion-dollar infrastructure deals that year, writing in a post in November that OpenAI was looking at commitments of about $1.4 trillion, including Stargate, over the next eight years. But as the company gears up for a potential initial public offering, it’s outlined a more measured strategy, telling investors in February that it’s targeting roughly $600 billion in total compute spend by 2030.