AI infrastructure startup Crusoe raises $11.6 billion to build OpenAI’s largest data center in Texas

Crusoe Energy Systems, a Denver-based AI infrastructure startup serving the energy sector, is stepping into the AI big league. The company has secured $11.6 billion to scale up a massive data center in Abilene, Texas, set to become OpenAI’s largest computing hub. The total investment now stands at an eye-popping $15 billion.

Originally reported by The Wall Street Journal, the funding round is one of the biggest bets ever made on AI infrastructure. The deal comes less than five months after Crusoe raised $600 million in a Series D round that valued the company at $2.8 billion, aimed at fueling its push into AI cloud infrastructure.

“A Texas data center that the startup Crusoe is building for OpenAI has secured $11.6 billion in new funding commitments, expanding a site that is core to increasing the ChatGPT maker’s long-term computing capabilities,” The Wall Street Journal reported.

Crusoe Secures $11.6B to Build OpenAI’s New Powerhouse

The Abilene campus is part of what’s being called the Stargate Project, a joint effort involving OpenAI, Oracle, SoftBank, and MGX. Construction began in mid-2024, and Crusoe is scaling the site from two to eight buildings. Once finished in 2026, each structure will house as many as 50,000 of Nvidia’s Blackwell chips—GPUs custom-built for training AI models.

That adds up to 400,000 GPUs at full build-out. The campus will run on 1.2 gigawatts of power, with Phase 1 already partially live at 0.2 gigawatts as of early 2025.

Oracle has committed to a 15-year lease on the site to provide OpenAI with dedicated cloud infrastructure. Oracle’s backend connects with Microsoft Azure, OpenAI’s primary cloud platform. This setup reflects OpenAI’s growing appetite for compute capacity—and its desire to reduce dependence on a single cloud provider.

From Crypto Mining to AI Infrastructure

Crusoe didn’t start out in AI. Launched in 2018, the company made a name for itself by using stranded natural gas to run crypto mining rigs. But as demand for AI compute skyrocketed, Crusoe shifted gears and leaned into building high-performance infrastructure for training large-scale models.

That pivot is clearly paying off. Crusoe has since landed major partnerships with Oracle, Microsoft, and now OpenAI.

The Abilene expansion builds on a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure announced in October 2024. Blue Owl is also one of the lead backers in this latest round. Crusoe itself has now raised $1.6 billion in funding, with support from Founders Fund, G2 Venture Partners, and Bain Capital Ventures.

Factory of the Future

Crusoe CEO Chase Lochmiller calls the site a “factory of factories”—a place where AI builds more AI. The goal: train next-gen models that can eventually improve or even automate parts of the training process itself.

Keeping the GPUs cool is no small feat. The company is using a mix of liquid cooling directly on the chips and traditional air-based systems to handle the heat.

Powering all of this will take serious energy. Through a joint deal with Engine No. 1 and Chevron, Crusoe has secured 4.5 gigawatts of natural gas capacity using GE Vernova turbines. This energy, expected online by 2027, will bypass the public grid and go straight to the data center. Renewable energy—like wind and solar—is also being explored to reduce the site’s carbon footprint.

Economic Boom Meets Environmental Questions

The Abilene buildout is expected to bring thousands of construction and manufacturing jobs to the region. Crusoe is working with developer Lancium to fast-track development using existing permits, helping them meet OpenAI’s and Oracle’s ambitious timelines.

But big builds come with big questions. A Morgan Stanley estimate suggests data center suppliers could produce up to 2.5 billion metric tons of CO₂ by 2030. Crusoe says it’s working to reduce emissions with renewable integration, though natural gas remains a core part of its energy strategy. Lochmiller believes AI can actually help solve the energy crisis, pointing to its potential role in scientific and engineering breakthroughs.

OpenAI’s Infrastructure Arms Race

This deal is part of a bigger story. OpenAI, now valued at $300 billion following a $40 billion SoftBank-led round in April 2025, is in an all-out race to scale its infrastructure. The Stargate Project, reportedly part of a $500 billion five-year buildout, is meant to position the U.S. as the global leader in AI development—a goal backed by political leaders, including President Trump, who publicly praised the effort earlier this year.

For Crusoe, it’s a major leap. From burning off excess gas to becoming a backbone of OpenAI’s operations, the company’s transformation speaks volumes about how quickly tech priorities are shifting.

And as the Abilene facility moves closer to completion, it’s clear this is more than just a data center. It’s a key piece of the AI race—and one that could help shape the future of how machines learn, reason, and reshape entire industries.