IMAGO/BMF via Reuters Connect
- OpenAI’s flurry of dealmaking for AI compute continues, with the company eying a huge project in Argentina.
- OpenAI and Sur Energy are teaming up for a large-scale facility with 500 megawatts of capacity.
- According to Argentina’s government, the project will require a $25 billion investment.
OpenAI’s flurry of dealmaking continues.
On Friday, Argentina’s government announced that the ChatGPT maker had entered into an agreement with Sur Energy for a large-scale data center in the Patagonia region.
The Stargate Argentina project will be a 500 megawatt facility requiring a $25 billion investment. It’s the latest in OpenAI’s flurry of major investments aimed at building out its AI infrastructure.
According to a government statement, the project will be developed by Sur Energy and an unnamed cloud infrastructure company, with OpenAI serving as the primary computing power customer. As of now, no exact start date for the data center’s construction nor an exact location has been provided.
The project is part of Argentine president Javier Milei’s Incentive Regime for Large Investments (RIGI), a program designed to bring new investments to Argentina. According to a statement, it will mark one of the largest energy infrastructure initiatives in the nation’s history.
OpenAI is expanding rapidly as it rushes to dominate the global AI market, both impressing and worrying other tech leaders. The company has made headlines recently after announcing deals with industry leaders like Nvidia and Advanced Micro Devices.
The company has done $1 trillion worth of computing deals so far in 2025.
According to local Argentine media, President Milei met with representatives from both OpenAI and Sur Energy on Friday, as well as the president of state-run Nucleoeléctrica Argentina SA.
“[The meeting] reflects OpenAI’s interest in investing in technological infrastructure to expand the global reach of artificial intelligence, in line with Argentina’s plans to establish itself as a sustainable innovation hub,” Milei’s office said following the event.
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