OpenAI, Oracle plan 1 gigawatt Stargate data center in Michigan with Related Digital

Core Insights - OpenAI, Oracle, and Related Digital are collaborating to construct a data-center campus exceeding 1 gigawatt in Saline Township, Michigan, as part of their Stargate initiative to enhance U.S. artificial intelligence infrastructure capacity [1][2] - The project represents a multi-billion dollar investment, with estimates suggesting that 1 GW of computing power could cost around $50 billion, enough to power approximately 750,000 U.S. homes [2] - This initiative is part of a broader 4.5-GW Stargate expansion, which, along with six other U.S. sites, will increase the planned capacity to over 8 GW and total investments to more than $450 billion over the next three years [3] Investment and Economic Impact - OpenAI's commitment to the Stargate project is aimed at meeting a $500 billion, 10-GW target, although specific funding details remain scarce [3] - The Michigan project is expected to generate over 2,500 union construction jobs, contributing to local economic development [5] Market Context - OpenAI has recently restructured to move away from its nonprofit origins, potentially paving the way for an initial public offering that could value the company at up to $1 trillion [4] - The rapid increase in valuations of AI companies and their substantial spending commitments, exceeding $1 trillion for OpenAI, has raised concerns about a potential bubble in the AI sector [4]