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Crusoe Secures $11.6 Billion to Expand Texas AI Data Center, Supporting OpenAI Infrastructure

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AI infrastructure startup Crusoe has raised an additional $11.6 billion to significantly expand its upcoming data center in Abilene, Texas, marking one of the largest funding rounds in the emerging “neocloud” space. The new capital brings the total raised for the project to $15 billion and will allow Crusoe to expand the facility from two to eight buildings, the company confirmed on Wednesday.

Founded in 2018 as a crypto-focused firm, Crusoe has since pivoted to become a specialized cloud provider for AI workloads, part of a new wave of “neoclouds” that offer tailored infrastructure beyond the traditional giants like AWS, Azure, and Google Cloud.

Crusoe has been contracted by Oracle to construct the first data center for Stargate — a major AI infrastructure initiative backed by OpenAI, SoftBank, and Oracle, with a planned $500 billion investment in global AI infrastructure. According to The Wall Street Journal, the Abilene facility is set to become OpenAI’s largest data center.

“Our customer is Oracle. OpenAI is Oracle’s customer,” Crusoe clarified in a statement, emphasizing its indirect yet vital role in supporting the ChatGPT creator’s infrastructure needs.

The project is seen as part of OpenAI’s long-term goal to reduce reliance on Microsoft, its current primary cloud provider.

Key Details:

  • Location: Abilene, Texas

  • Total Buildings: 8 (up from 2)

  • AI Chips: Each building will house up to 50,000 Nvidia Blackwell systems

  • Sponsors: Crusoe, Blue Owl’s Real Assets platform, and Primary Digital Infrastructure

The facility will support intensive generative AI workloads, crucial for OpenAI’s future model development and deployment.

The explosive growth in demand for AI compute capacity has fueled an investment boom in data centers powered by specialized chips like Nvidia’s Blackwell series — a market Crusoe is aggressively entering.

Neither OpenAI nor Nvidia responded to requests for comment at the time of publication.

Tesla to Launch Robotaxi Trial in Austin by End of June, Says Elon Musk

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Tesla is preparing to begin its much-anticipated robotaxi pilot program in Austin, Texas, by the end of June, CEO Elon Musk confirmed in an interview with CNBC. The trial marks a significant milestone for the electric carmaker’s shift toward autonomous driving and AI-driven products.

Initially, Tesla plans to deploy about 10 self-driving vehicles in select “safest” parts of Austin, with the goal of scaling up to approximately 1,000 cars over the following months. The launch comes at a critical time for Tesla, as global sales have slowed amid growing EV competition and mounting scrutiny of Musk’s political affiliations and side ventures.

Musk emphasized that Tesla’s long-term future hinges on autonomy and its humanoid robot project, Optimus. “The only things that matter in the long term are autonomy and Optimus,” he stated, underlining the strategic pivot away from building a low-cost EV platform.

The robotaxi launch will face close examination from the U.S. National Highway Traffic Safety Administration (NHTSA), which is currently investigating incidents involving Tesla’s Full Self-Driving (FSD) software, particularly in low-visibility conditions. The regulator recently asked Tesla to detail how its robotaxis will operate in adverse weather.

Meanwhile, Musk revealed that Tesla is in licensing discussions with major automakers interested in using its FSD software — a potential revenue stream that could help commercialize the robotaxi platform faster.

Beyond Tesla, Musk’s AI startup xAI is also making headlines. The company is expanding a massive supercomputer cluster named “Colossus” in Memphis, Tennessee, which will feature one million of Nvidia’s Blackwell chips — part of a broader plan to train advanced AI models. xAI recently acquired a 1-million-square-foot property in Memphis to support the buildout.

While a merger between Tesla and xAI is not currently planned, Musk did not rule it out entirely, stating it would require shareholder approval if it were to move forward.

China Threatens Legal Action Over U.S. Chip Restrictions Targeting Huawei

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China has issued a sharp warning, stating that it may pursue legal consequences against individuals or organizations that participate in enforcing or complying with U.S. restrictions aimed at limiting the use of advanced Chinese semiconductors.

The statement, released by China’s Ministry of Commerce, comes in response to new U.S. guidance issued last week. That guidance warned companies they may violate U.S. export controls if they use Ascend AI chips made by Shenzhen-based tech giant Huawei.

China accused the U.S. of engaging in “discriminatory restrictive measures” and warned of “corresponding legal liabilities” for those who assist or implement such policies. The ministry urged Washington to respect international trade laws and to stop actions that disrupt global supply chains or unfairly target Chinese firms.

The escalation reflects mounting tensions in the global tech war between the U.S. and China. Huawei, which has long been a focal point in this dispute, continues to face export restrictions over alleged national security concerns. The new U.S. advisory targets the AI segment — a crucial area of technological competition — where Huawei’s Ascend chips are gaining traction.

While the Chinese statement did not specify what form legal action might take, the warning suggests that Beijing could respond with domestic legal challenges or retaliatory trade and regulatory measures against companies perceived as cooperating with U.S. sanctions.