Meta Platforms(US:META) CNBCยท2025-10-05 12:00Core Insights - OpenAI is aggressively expanding its infrastructure to support the development of large language models, with a focus on building data centers across the U.S. [2][3][5] - The company is prioritizing access to power, scalability, and community support over tax incentives in its site selection process [3][4][10] - OpenAI's partnership with Nvidia includes a significant investment of up to $100 billion to facilitate the purchase of GPUs for its data centers [9][14] Infrastructure Development - Keith Heyde, the head of infrastructure at OpenAI, is leading the site development efforts, which have become a strategic priority for the company [4][10] - OpenAI is currently reviewing proposals from around 800 applicants for its Stargate data centers, with about 20 sites in advanced stages of diligence [3][11] - The energy requirements for these data centers are substantial, with plans for a 17-gigawatt buildout in collaboration with Oracle, Nvidia, and SoftBank [7][8] Competitive Landscape - OpenAI faces competition from major players like Meta, which is constructing a $10 billion data center, and Amazon, which is developing a large AI campus in Indiana [12][13] - The company has raised significant capital from investors such as Microsoft and SoftBank, contributing to its valuation of $500 billion [13] - OpenAI's approach to owning its infrastructure is aimed at reducing costs and safeguarding intellectual property, similar to Amazon's strategy with AWS [14] Future Plans - OpenAI's long-term vision includes scaling from single-gigawatt projects to larger campuses, indicating a commitment to substantial growth in AI infrastructure [18][19] - The company is exploring various energy options for its data centers, including solar, gas, and nuclear sources, to meet its power needs [8][10] - OpenAI acknowledges the challenges of its ambitious plans but remains optimistic about the feasibility of its infrastructure goals [19]