The Real Reason OpenAI Walked Away From an Oracle Stargate Expansion in Abilene

Finance and data center executives have been buzzing about a Friday Bloomberg report that Oracle and OpenAI won’t expand a data center for the ChatGPT maker in Abilene, Texas, where the companies launched their first Stargate-branded facilities. 

As I have since learned, OpenAI several weeks ago declined to expand its data center usage there. Oracle still planned to move forward with an expansion of the site for a different AI customer, according to someone involved in the talks, but decided not to move forward last weekend.

Everyone is wondering whether this news means demand for AI computing is cooling.

The short answer is no.