OpenAI is making big moves with its $100 billion Stargate project. Still, despite its massive price tag, the first data center planned for Abilene, Texas, is raising eyebrows about how few people it will employ once it's up and running. According to Bloomberg, the sprawling 875-acre facility – about the size of New York's Central Park – will create only 57 full-time jobs, each paying an average of $57,600 annually.
A Huge Project, Minimal Jobs
The Stargate data center is being built to support OpenAI's artificial intelligence systems, and it's backed by SoftBank and Oracle, who are helping to fund and manage the ambitious project. While the size and scope of the data center are undeniable, the job creation numbers are modest, especially compared to the fanfare surrounding its announcement.
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President Donald Trump announced the project recently and said it would create "over 100,000 American jobs." However, most jobs will be for construction or other short-term work. Once the center is running, only a small team will be needed. This isn't unusual for data centers – for example, Microsoft's data centers in Texas employ just 325 people, with most of their job opportunities being temporary construction roles.
For example, Microsoft's data centers across Texas employ just 325 people, and most job opportunities are tied to temporary construction work.
The Stargate Vision
OpenAI has bigger plans for Stargate beyond Abilene. The company aims to expand its data center network across the U.S. and raise $500 billion to fund additional facilities over the next few years. According to OpenAI, these projects will create hundreds of thousands of construction jobs, from electricians to truck drivers, mirroring the employment boom associated with large infrastructure projects.
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Bloomberg reports that in Texas, the first phase of the Abilene site involves building a 200-megawatt data center, with plans to expand to 1.2 gigawatts. To put that in perspective, 1 gigawatt is enough to power 200,000 homes.
Local Incentives and Concerns
The city of Abilene reportedly gave OpenAI an 85% discount on property taxes for the next 20 years to bring the Stargate project to the area. This is a common way cities try to attract big companies. However, some people worry about the negative effects, like how much energy the center will use and how it might look in the community.
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In response, OpenAI has positioned Stargate as a project to strengthen America's AI capabilities and ensure the country remains competitive with global players like China. However, skepticism remains over whether the economic benefits justify the investment.
Musk vs. Altman: A Controversy Surrounding Stargate
The announcement of Stargate has also sparked controversy, with Elon Musk publicly criticizing OpenAI's involvement in the project. Musk accused OpenAI of lacking the financial resources to meet its $100 billion commitment, which some see as part of his ongoing feud with OpenAI CEO Sam Altman. While President Donald Trump downplayed Musk's comments, insiders suggest the tension has created headaches within Trump's circle, highlighting the complexities of this high-profile initiative.
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