OpenAI announced on Thursday that it is evaluating US states as potential locations for data centres supporting its ambitious Stargate project, which aims to secure the US's lead in the global AI race. The project is seen as crucial for ensuring that AI development remains democratic and open, rather than falling under authoritarian control, according to Chris Lehane, OpenAI's chief global affairs officer.

Stargate, a venture backed by SoftBank, OpenAI, Oracle, and other investors, is set to receive up to$500 billion for AI infrastructure. A significant portion of this investment,$100 billion, will be deployed immediately, with the rest scheduled over the next few years. Texas has been designated as the flagship location for Stargate's data centres. An initial site under construction in Abilene is expected to begin operations later this year.

The announcement follows the rise of DeepSeek, a Chinese AI model that challenges the traditional view that AI development requires large, specialised data centres. DeepSeek's use of cheaper chips has raised concerns among investors, leading to a significant drop in tech stock values, including a record$593 billion loss for Nvidia, the leading AI chipmaker.

OpenAI is considering data centre locations in approximately 16 states, with plans to expand the Stargate network to five to ten campuses in the coming months.