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OpenAI's $1 Trillion Data-Center Plan; Defense Startup Develops Made-in-the-U.S. Supply Chain

By Mark R. Long | WSJ Logistics Report

 

OpenAI is already working with partners on a sprawling computing complex west of Dallas. PHOTO: DANIEL COLE / REUTERS

OpenAI laid out its vision for a vast, $1 trillion buildout of computing warehouses across the U.S. and abroad, showcasing the development of an 1,100-acre complex in Abilene, Texas.

The startup signed a deal with Oracle for the site in June, setting off months of frenzied construction to bring online eight data centers with roughly 900 megawatts of capacity. The Wall Street Journal’s Berber Jin writes that more than 6,000 electricians, plumbers, steel welders and other workers labor on the project each day.

A day after the startup announced a $100 billion deal with Nvidia, OpenAI said it would ultimately need more than 13 times the computing power of the nascent site. OpenAI also announced five new data-center sites across the U.S. built with Oracle and Japan's SoftBank. It said the new facilities would help bring online nearly 7 gigawatts of power, enough for almost 8 million homes.

  • Nvidia’s $100 billion investment in OpenAI follows a pattern in which the company helps strengthen supply-chain partners. (WSJ)
  • Boeing said it was joining forces with Palantir to integrate AI into its defense, space and security business. (WSJ)
  • Eli Lilly plans to build a $6.5 billion facility in Houston to make active pharmaceutical ingredients. (WSJ)
 
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Manufacturing

Divergent Technologies uses its proprietary 3-D printers at its Los Angeles campus. PHOTO: DIVERGENT TECHNOLOGIES

Defense manufacturing startup Divergent Technologies is going beyond selling made-in-the-USA products by also making its own machinery. The WSJ Logistics Report’s Liz Young writes that the Torrance, Calif., company, which manufactures vehicle frames, suspension systems and missile parts, uses an end-to-end digital production system that designs and manufactures products using 3-D printers.

Divergent previously had a joint venture with manufacturer Nikon SLM Solutions to develop the printers but is now designing and manufacturing the machines itself, using a predominantly U.S. supply chain. That decision is helping the company, which last week closed a $290 million funding round valuing it at $2.3 billion, avoid tariff-related swings in costs. In an interview, CEO Lukas Czinger explains why the company builds its own 3-D printers and what the process has been like to secure American suppliers.

 
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Quotable

“The industry has been able to pass on these costs to the consumer. It’s all been pretty disciplined and rational. And we suspect that’s going to continue.”

— AutoZone CEO Philip Daniele, speaking about rising costs from tariffs after the company posted higher same-store sales
 

Global Trade

An Uzbekistan Airlines Boeing 767-300 airliner. PHOTO: MIKHAIL JAPARIDZE / TASS VIA ZUMA PRESS

Boeing received an order from Uzbekistan Airways worth more than $8 billion, the second deal announced this week between a Central Asian nation and a major U.S. manufacturer. 

The companies said that Uzbekistan Airways would buy 14 of Boeing’s 787-9 Dreamliner jets, with options for eight more, which would mark the carrier’s largest purchase to date. President Trump lauded the deal in a Truth Social post, saying he spoke with Uzbek President Shavkat Mirziyoyev earlier this month. The purchase would support nearly 35,000 U.S. jobs, the companies said. It follows the announcement of Wabtec’s $4.2 billion locomotive deal with Kazakhstan's national railway.

 

Number of the Day

$3.749

Average price for a gallon of diesel fuel across the U.S. in the week ended Sept. 22, up a penny week-over-week and up 21 cents from a year earlier, according to the Energy Information Administration

 

In Other News

The U.S. and global economies are set to slow less sharply this year than previously expected, but will lose momentum in 2026 as higher tariffs take a toll, the OECD said. (WSJ)

U.S. business activity expanded at its slowest pace in three months, with the S&P Global Flash U.S. Composite PMI falling to 53.6 in September from 54.6 in August. (WSJ)

Indonesia and the European Union signed a long-awaited trade deal. (WSJ)

Business activity expanded in Europe this month, but at a level that suggests the wider economy is growing slowly. (WSJ)

The eurozone economy faces the threat of higher inflation and slower economic growth if supplies of rare earth minerals from China are disrupted, the European Central Bank said. (WSJ)

Manufacturing activity in the U.S. mid-Atlantic region decreased more than anticipated in September, with the index falling 10 points to minus 17. (WSJ)

DHL Group said its German post and parcel division would resume shipping to the U.S. for business customers after a four-week suspension. (Dow Jones Newswires)

Sempra is selling 45% of Sempra Infrastructure Partners to KKR affiliates for $10 billion, reducing its stake to 25%. (WSJ)

Amazon plans to close all 14 of its Amazon Fresh U.K. stores, converting five into Whole Foods Market locations. (WSJ)

Jaguar Land Rover extended its production pause until Oct. 1 as the unit of India’s Tata Motors continues to deal with the fallout of a recent cyberattack. (WSJ)

Heineken is buying beverage and retail businesses from Costa Rica’s Florida Ice and Farm in a $3.2 billion deal. (WSJ)

The Trump administration is seeking a stake of as much as 10% in Lithium Americas as it renegotiates terms of a federal loan for the company’s Thacker Pass lithium project. (Reuters)

Crane maker Paceco said a deal to supply Mediterranean Shipping’s terminal unit with two ship-to-shore cranes at the Port of Long Beach will include American-made parts. (Journal of Commerce)

Alcoa’s CEO said new tariffs will destroy demand for U.S. aluminum. (Bloomberg)

Poland’s closure of its border with Belarus has left more than 130 trains stranded and sent air-freight rates higher. (The Loadstar)

The containership Istanbul Bridge left China on the first trip of a new service to Europe via the Arctic’s Northern Sea Route. (TradeWinds)

Singapore’s Seatrium reached a deal to sell its AmFELS shipyard in Brownsville, Texas, to a unit of Turkish floating power provider Karpowership for $50.6 million. (gCaptain)

The number of cyberattacks on third-party suppliers to companies worldwide doubled last year, as hackers increasingly target supply chains. (Financial Times)

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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