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OpenAI, Oracle expand $500B Stargate spend as Musk unveils bold xAI plan

2025-07-23 10:35:14

Main Idea

OpenAI and Oracle expand their Stargate AI project to exceed 5 GW of power, while Elon Musk announces xAI's ambitious plan to deploy 50 million H100-scale AI units in five years.

Key Points

1. OpenAI partners with Oracle to expand Stargate, adding 4.5 GW of compute capacity, pushing the project beyond 5 GW and powering over 2 million AI chips.

2. OpenAI CEO Sam Altman confirms over 1 million GPUs will be online by year-end and hints at further expansion beyond the initial $500 billion commitment.

3. Elon Musk reveals xAI's goal to deploy 50 million H100-equivalent AI compute units within five years, which would be 500 times the compute power of the world's most powerful AI supercomputer a year ago.

4. xAI's upcoming Colossus 2 supercomputer will use 550,000 GB200 chips, roughly equivalent to 5.5 million H100s, with Musk's plan aiming to nearly 10x that capacity.

5. The $500 billion Stargate AI project, backed by OpenAI, SoftBank, and Oracle, faces delays and internal disagreements despite initial promises to deploy $100 billion immediately and create over 100,000 jobs.

Description

OpenAI expands Stargate with Oracle to surpass 5 GW of AI power, while Elon Musk outlines plans for xAI to deploy 50 million H100-scale units in 5 years.

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