OpenAI, Softbank (SFTBY), and Oracle (ORCL) backed joint venture, Stargate Project, is set to host 400,000 of Nvidia’s (NVDA) AI (artificial intelligence) chips at its first site in Texas. Construction at the Abilene site is already underway, with the first phase expected to be operational in the first half of 2025, and the full complex slated for completion by mid-2026. The project aims to support AI training and inference at exceptionally high speed and scale.
Stargate Is Revolutionizing the Future of AI Computing
The complex will consist of eight data center buildings, with each having a capacity to hold up to 50,000 Nvidia GB200 NVL72 superchips on a single integrated network fabric. The $100 billion Stargate project is poised to become one of the largest clusters of AI computing power. According to the developer Crusoe Inc., the entire complex will have a total capacity of 1.2 gigawatts of computing power. Notably, Oracle has committed to utilizing the full capacity of the Abilene complex, and the project aims to build a total of 10 such massive complexes across the U.S.
Currently, the developer is constructing two data center buildings spanning 980,000 square feet, with a capacity of over 200 megawatts. The site currently employs about 2,000 people, with the potential to expand to 5,000 workers as the construction ramps up. The Stargate project is part of a broader race to build massive AI computing capacity, with other tech companies such as Elon Musk’s xAI, CoreWeave, and Meta Platforms (META) also investing heavily in AI infrastructure.
What AI Stocks Will Benefit from Stargate?
We used the TipRanks Stock Comparison Tool to understand which Stargate stock is most favored by analysts. Investors can consider investing in one of these stocks after thorough research.
Currently, Microsoft (MSFT), Meta Platforms, and Nvidia score Wall Street’s Strong Buy consensus rating, with NVDA stock offering a higher upside potential compared to the rest.
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