Crusoe Energy Systems, a Denver-based AI infrastructure startup that serves the energy sector, is stepping into the AI big leagues. The company sets out $11.6 billion to expand its large data center in Abilene, Texas, and is set to become Openai’s largest computing hub. Currently, the total investment is at $15 billion.
The funding round, originally reported by the Wall Street Journal, is one of the biggest bets ever made on AI infrastructure. The deal is less than five months after Crusoe raised $600 million in the Series D round, which valued the company at $2.8 billion, aimed to promote a push to AI cloud infrastructure.
“The Texas data center that Startup Crusoe is building for Openai has secured $11.6 billion in new funding commitments and expanded its core site to expand the ChatGPT manufacturers’ long-term computing capabilities,” the Wall Street Journal reported.
Crusoe has secured $11.6 billion to build a new powerhouse in Openai
The Abilene Campus is part of what is called the Stargate Project and is a joint effort that includes Openai, Oracle, Softbank and MGX. Construction began in mid-2024, with Crusoe expanding its site from two to eight buildings. Ending in 2026, each structure will house 50,000 Nvidia’s Blackwell chips. It is custom built for training AI models.
This adds up to 400,000 GPUs upon full buildout. The campus operates on 1.2 gigawatts of electricity, with Phase 1 already partially present at 0.2 gigawatts as of early 2025.
Oracle is working on a 15-year lease at its site to provide Openai with a dedicated cloud infrastructure. Oracle’s backend connects to Microsoft Azure, Openai’s leading cloud platform. This setup reflects Openai’s growing desire for computing power and its desire to reduce its dependency on a single cloud provider.
From crypto mining to AI infrastructure
Crusoe didn’t start with AI. Launched in 2018, the company created its own name by operating crypto mining rigs using chained natural gas. However, as demand for AI calculations spiked, Crusoe shifted gears and relied on building high-performance infrastructures to train large-scale models.
That pivot is clearly rewarding. Crusoe has since won major partnerships with Oracle, Microsoft and the current Openai.
The Abilene expansion is based on a $3.4 billion joint venture between Blue Owl Capital and major digital infrastructure announced in October 2024. Crusoe itself has now raised $1.6 billion in funding with support from the Founders Fund, G2 Venture Partners and Bain Capital Ventures.
Factory of the Future
Crusoe CEO Chase Lochmiller calls the site “factory factory,” a place where AI builds more AI. Goal: Training next-generation models that can ultimately improve or automate parts of the training process itself.
Keeping your GPU cool is not a small feat. The company uses traditional air-based systems to handle heat using a liquid cooling mixture directly on the chip.
It takes serious energy to make all of this work. Through a joint deal with Engine No. 1 and Chevron, Crusoe has used Ge Vernova turbines to secure a natural gas capacity of 4.5 gigawatts. The energy, expected online by 2027, bypasses the public grid and travels directly to the data center. Renewable energies like wind and the sun are also being explored to reduce the site’s carbon footprint.
The economic boom meets environmental issues
Abilene Buildout is expected to bring thousands of construction and manufacturing jobs to the area. Crusoe works with developer Lancium to help them develop fast tracks using existing permissions and meet Openai and Oracle’s ambitious timelines.
But there are big questions about big builds. Morgan Stanley estimates suggest that data center suppliers could potentially produce up to 2.5 billion tonnes of CO2 by 2030. Crusoe says that while natural gas is a central part of its energy strategy, it works to reduce emissions from renewable integration. Lochmiller believes that AI will indeed help resolve the energy crisis, pointing to its potential role in scientific and engineering breakthroughs.
Openai’s infrastructure arm race
This deal is part of a bigger story. Valued at $300 billion following the $40 billion SoftBank-led round in April 2025, Openai is in the full race to expand its infrastructure. The Stargate Project, reportedly part of a five-year build-out, aims to position the US as a global leader in AI development. This is a goal backed by political leaders, including President Trump, who publicly praised the effort earlier this year.
For Crusoe, that’s a huge leap. From burning excess gas to being the backbone of Openai’s business, the company’s transformation speaks volumes of how quickly technology priorities are shifting.
As Abilene’s facilities approach completion, it is clear that this is more than just a data center. This is an important part of the AI race and helps shape the future of the way machines learn, reason and reconstruct the entire industry.
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