Oracle is making a groundbreaking $40 billion investment in NVIDIA chips to help power one of the most advanced AI data centers in the world.
The facility to be built in Abilene, Texas is part of the ambitious $500 billion “Stargate Project” aimed at redefining AI infrastructure globally, in collaboration with OpenAI.
Massive Deal: 400,000 NVIDIA GB200 Chips
The tech giant plans to acquire around 400,000 of NVIDIA’s cutting edge GB200 chips, known for their unmatched performance in training and running large scale AI models.
The upcoming data center is expected to deliver 1.2 gigawatts of computing power when it becomes operational by mid-2026.
Strategic Partnership with OpenAI
Oracle will lease the processing capacity to OpenAI, providing the ChatGPT creator with a powerful alternative to its current reliance on Microsoft’s Azure cloud services. This marks a significant step in OpenAI’s move to diversify its infrastructure partners.
Long-Term Plans and Global Expansion
Oracle has signed a 15-year lease for the Abilene site.
The project is being funded with $9.6 billion in debt financing led by JPMorgan, and $5 billion in equity from Crusoe and Blue Owl Capital. Oracle,
OpenAI, and NVIDIA are also working on a similar large-scale AI center in the United Arab Emirates, set to launch in 2026 with over 100,000 NVIDIA chips.
