Oracle's $40 Billion Investment in Nvidia AI Chips for Massive OpenAI Data Center

Oracle has reportedly placed an order for $40 billion in Nvidia AI GPUs for a new OpenAI data center

Oracle has reportedly purchased about 400,000 Nvidia GB200 AI chips, worth about $40 billion, for deployment in Abilene, Texas. According to the Financial Times, this site will be the first to host the U.S. Stargate project -- a $500 billion investment in AI infrastructure by OpenAI, Oracle, SoftBank, and Abu Dhabi sovereign wealth fund MGX that President Trump announced earlier this year. Upon completion, the site is estimated to deliver up to 1.2 gigawatts of computing power, making it one of the most powerful data centers in the world and competing against Elon Musk's Colossus in Memphis, Tennessee. The project's ownership is a bit complicated, though. The Abilene site is owned by Cruso, an AI infrastructure company, and Blue Owl Capital, a U.S. investment firm. Both have poured over $15 billion into the site through debt and equity financing. The AI data center campus is approximately 875 acres and will have eight buildings. Construction began in June last year. Oracle will lease the Abilene site for 15 years, where it will deploy these AI chips. It will then lease this massive computing power to OpenAI, allowing it to use the AI chips to train its next-generation AI LLMs. OpenAI has solely relied on Microsoft's data centers for its computer power needs. However, it has since become frustrated with the setup, because the former's demand was greater than what the latter could supply. So, the two decided to terminate their exclusive contract, allowing the AI pioneer to partner with other organizations for its processing power demands. Interestingly, all these talks on equity and investments are commitments by the individual companies -- the Financial Times said that Stargate itself has yet to commit any amount to a data center. Nevertheless, OpenAI recently also announced Stargate UAE, where it plans to deploy a 1GB cluster in Abu Dhabi in coordination with the U.S. government. The 5 GW data center will be built by G42 and is envisioned to utilize more than 2 million Nvidia GB200 chips. All these AI data center deployments have helped Nvidia become one of the most valuable companies in the world, with Team Green hitting the number one spot (again) in late 2024. Aside from this $40 billion Oracle order, there has also been news that Elon Musk is raising cash to build Colossus 2, featuring a million GPUs. Other tech giants and even governments are trying to get in on the bandwagon, pushing the demand for the latest, most powerful AI chip through the roof.

Oracle reportedly plans $40B of Nvidia GPUs for OpenAI DC

400,000 of Nvidia's GB200 Superchips are gonna need a bit more than 1.2GW of datacenter capacity Oracle will reportedly shell out around $40 billion on Nvidia's most advanced GPUs to provide compute power to OpenAI from the first US Stargate datacenter in Abilene, Texas, assuming the site can deliver enough electricity to handle the load. Citing sources familiar with the matter, The Financial Times reported Friday the massive investment will pay for around 400,000 Nvidia GB200 superchips. These accelerators, announced at Nvidia's GTC event last March, feature a pair of its most powerful Blackwell GPUs along with its homegrown Grace CPU. Thirty-six of these superchips form an NVL72 system capable of churning out 1.4 exaFLOPS of sparse FP4 compute. This indicates that Oracle will pack the 1.2 gigawatt facility built by Crusoe with around 11,000 of these rack systems, totaling nearly 16 zettaFLOPs of the lowest precision compute money can buy. And with an estimated cost per rack of $3.5 million, the $40 billion price tag isn't too far off once you factor in all the trimmings necessary to get the liquid-cooled gear running. But a little back-of-the-napkin math suggests that either those figures are off or the 1.2 gigawatt facility may not have enough power to run them all at the same time. Each NVL72 rack is rated for a peak power draw of 120 kilowatts, and that's before you factor in power and cooling related losses. By our estimate, you'd need 1.45 gigawatts of power, assuming a power usage effectiveness (PUE) of 1.1 to harness their full potential. And that's when the datacenter campus is complete. Only about 200MW of datacenter capacity will be ready this year. By our estimate, that's enough for about 1,500 NVL72 racks or about 54,000 GB200 superchips. The remaining gigawatt of datacenter capacity is expected to come online sometime in 2026, with Oracle set to lease the site for 15 years. While power could prove problematic, Oracle and datacenter operator Crusoe could still make it work. Just because each of these rack-scale systems can draw 120kW doesn't mean they always will. Some degree of over-provisioning is to be expected. With the Abilene campus spanning eight buildings, it's unlikely that Oracle will attempt to wrangle all 400,000-some superchips into a single training cluster. We anticipate a decent chunk of them will be tasked with other workloads like inference, synthetic data generation, reinforcement learning, and other workloads unlikely to push the systems to their limits. How OpenAI's Abilene supercluster stacks up Assuming Oracle and Crusoe can overcome these power constraints, the Abilene datacenter campus will be among the most powerful AI supercomputers in the United States, offering 10-20x more compute capacity than rival Elon Musk's 200,000 GPU Colossus supercomputer. Located in Memphis, Tennessee, the system is based on Nvidia's H100 and H200 GPUs and boasts nearly 800 exaFLOPS of sparse FP8 compute powered by a pair of 150MW substations and another 150MW of Tesla battery backups. Or at least that's the plan. So far, only one of the two substations has been completed. In the meantime, additional capacity is being supplied by more than a dozen smog-belching gas turbines. So, OpenAI and Oracle certainly wouldn't be the first to run up against power constraints. With that said, OpenAI's Abilene model factory isn't even close to the biggest AI datacenter project announced so far. Back in December, Facebook parent Meta drew up plans for a 2.2 gigawatt datacenter campus in Richland Parish, Louisiana, which will be built out in stages over the next five years or so. Meta hasn't said how many GPUs it plans to pack the facility with, but has said that it expects to have 1.3 million accelerators across its datacenter footprint by year's end. Stargate goes international Friday's report comes just days after OpenAI took its $500 billion Stargate scheme international. Described as the AI giant's moonshot, Stargate is a global joint venture that aims to build exascale-class infrastructure and secure strategic compute independence. Working with Oracle, Nvidia, Cisco, SoftBank, and G42 Cloud, OpenAI plans to bring additional gigawatt of compute capacity online in the United Arab Emirates (UAE). The first phase of the project is expected to total 200MW and come online in 2026. The Register reached out to Oracle and OpenAI for comment, but hadn't heard back at the time of publication. ®

Oracle to buy $40 billion of Nvidia chips for OpenAI's US data center, FT reports

May 23 (Reuters) - Oracle (ORCL.N), opens new tab will spend around $40 billion on Nvidia's (NVDA.O), opens new tab higher-performance chips to power OpenAI's new U.S. data center, the Financial Times reported on Friday. The cloud service provider will purchase around 400,000 of Nvidia's most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter. OpenAI, Nvidia and Oracle did not immediately respond to Reuters' requests for comment. The data center is a part of the U.S. Stargate project, led by top AI firms in the country, to boost America's heft in the artificial intelligence industry amid heating global competition. Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

Oracle to buy $40bn of Nvidia chips for OpenAI's new US data centre

Oracle will spend around $40bn on Nvidia's high-performance computer chips to power OpenAI's new giant US data centre, as tech groups race to build the vast infrastructure needed to underpin artificial intelligence models. The site in Abilene, Texas, has been billed as the first US Stargate project, the $500bn data centre scheme spearheaded by OpenAI and SoftBank, and will provide 1.2 gigawatts of power when it is completed next year, making it one of the largest in the world. Oracle will purchase around 400,000 of Nvidia's GB200 chips -- its latest "superchip" for training and running AI systems -- and lease the computing power to OpenAI, according to several people familiar with the matter. The site's owners, Crusoe and US investment firm Blue Owl Capital, have raised $15bn in debt and equity to finance the Abilene project, which will encompass eight buildings and first broke ground in June last year. The data centre is expected to be fully operational by mid-2026. Oracle has agreed to lease the site for 15 years. Stargate, which incorporated earlier this year, has not invested in the site. JPMorgan has provided the bulk of the debt financing across two loans totalling $9.6bn, according to people close to the matter, including a $7.1bn loan announced this week. Crusoe and Blue Owl have separately invested around $5bn in cash. Once completed, its scale will rival plans by Elon Musk to expand his "Colossus" data centre in Memphis, Tennessee, to house around 1mn Nvidia chips. Much of the data centre has so far been built on Nvidia's earlier H100 and H200 chips, which are less powerful. Musk said this week that the next phase of Colossus would be the "first Gigawatt AI training supercluster". Amazon is building a data centre in northern Virginia that will be larger than 1GW. The Abilene data centre is a crucial step in OpenAI's move to reduce its dependence on Microsoft. Previously, the $300bn-start up has exclusively relied on the US software giant for its computing power, and a large chunk of Microsoft's near-$14bn investment in OpenAI has come in the form of cloud computing credits. OpenAI and Microsoft agreed to terminate their exclusivity agreement earlier this year after the start-up became frustrated that its demand for power far exceeded the US tech giant's supply. The two groups are negotiating to determine how long Microsoft will retain licensing rights to OpenAI's models. Stargate will play a key role in providing OpenAI's future computing power. The high-profile venture, billed as a huge infrastructure project to boost the US AI industry, is raising $100bn to spend on data centre projects, with the figure rising to as much as $500bn over the next four years. OpenAI and SoftBank have each committed $18bn to Stargate, which was unveiled in January by US President Donald Trump. Oracle and MGX, an Abu Dhabi sovereign wealth fund, committed a further $7bn each, according to a person familiar with the matter. The four groups will hold equity stakes in the project, with SoftBank and OpenAI the majority owners, according to a second person with knowledge of the matter. Stargate has not committed capital to any data centre project so far. OpenAI has also expanded its Stargate project overseas, with plans to build a massive data centre in the UAE that was announced as part of Trump's Gulf tour last week. The 10 sq mile UAE-US AI campus, located in Abu Dhabi and built by Emirati AI company G42, is planned to have 5GW of data centre power -- equivalent to more than 2mn of AI chipmaker Nvidia's latest generation of GB200 chips. Oracle did not immediately respond to a request for comment. JPMorgan and OpenAI declined to comment.

Oracle invests $40 billion in Nvidia chips to build one of the world's largest data centers

Forward-looking: Oracle has committed to spending approximately $40 billion on Nvidia's latest high-performance chips to power a massive new data center in Abilene, Texas. The facility will require up to 1.2 gigawatts of power once fully operational and serves as the flagship site of the Stargate project - a $500 billion initiative led by OpenAI and SoftBank to reshape the landscape of AI computing in the United States and beyond. The facility will cover eight buildings across 875 acres. Crusoe Energy Systems and Blue Owl Capital raised $15 billion in debt and equity to finance the buildout. JPMorgan played a key role by providing $9.6 billion in loans, including a recently announced $7.1 billion tranche. When crews complete construction, the Texas facility will be one of the world's largest data centers when it opens in mid-2026. OpenAI has entered into a 15-year lease for the entire campus, which insiders told the Financial Times would run on roughly 400,000 Nvidia GB200 superchips. The data center will serve as a critical platform for OpenAI's AI model training and deployment, marking a crucial step in diversifying its computing resources and reducing reliance on Microsoft, its primary infrastructure provider until now. The exclusivity agreement between OpenAI and Microsoft concluded earlier this year, as OpenAI's demand for computing power surpassed Microsoft's available capacity. While negotiations continue regarding the duration of Microsoft's licensing rights to OpenAI's models, this development marks a significant shift toward diversified cloud partnerships for the AI leader. While Stargate has yet to directly invest capital in any data center beyond the Texas site, its global expansion plans are already taking shape, with additional deployments being considered in Europe and Asia. The scale and speed of these investments underscore the intensifying competition among technology companies and nations to build the backbone for the next generation of artificial intelligence. The Stargate project is ambitious in scale and vision. Backed by OpenAI, SoftBank, Oracle, and Abu Dhabi's MGX, the group plans to invest up to $500 billion over four years to build a national network of AI supercomputing centers. The first $100 billion will fund up to 20 sites, starting with the Texas facility. Sources say that SoftBank and OpenAI will each hold a 40 percent stake in the venture, making them the primary equity holders. Oracle and MGX, a state-owned investment firm from the United Arab Emirates, have committed $7 billion each. SoftBank will oversee finances, while OpenAI leads operations. OpenAI and its partners plan to expand Stargate beyond the US, starting with a 10-square-mile AI campus developed alongside Emirati tech firm G42 in Abu Dhabi. The site could consume up to 5GW of power - more than four times the Texas center - and eventually house over two million of Nvidia's most advanced chips. The UAE project, announced during President Donald Trump's recent Gulf visit, forms part of OpenAI's "OpenAI for Countries" initiative to help governments build sovereign AI infrastructure.

Oracle reportedly buying 400,000 Nvidia chips for first Stargate data center - SiliconANGLE

Oracle reportedly buying 400,000 Nvidia chips for first Stargate data center Oracle Corp. is buying $40 billion worth of Nvidia Corp. chips to build a data center for OpenAI, the Financial Times reported today. The deal is believed to involve about 400,000 GB200 Grace Blackwell processors. Each chip combines two of Nvidia's latest Blackwell B200 graphics cards with a 72-core central processing unit. Oracle will use the chips to power a sprawling data center currently under construction in Abilene, Texas. The facility will reportedly consume 1.2 gigawatts of power once it's fully operational. That corresponds to the electricity usage of about one million households. The facility is part of Stargate, OpenAI's initiative to build a network of artificial intelligence data centers in the U.S. The ChatGPT developer has partnered with Oracle, Softbank Group Corp. and Abu Dhabi-based fund MGX on the project. Stargate is expected to cost up to $500 billion over the next four years. The Financial Times cited sources as saying that OpenAI and SoftBank will each invest $18 billion in the project for a majority stake. Oracle and MGX, in turn, have reportedly committed $7 billion each. The Texas data center where Oracle plans to install its 400,000 Nvidia chips is set to come online in mid-2026. It's owned by Crusoe Energy Systems LLC, a Denver-based data center startup, and investment firm Blue Owl Capital. The two companies have reportedly raised about $15 billion from institutional backers, mostly in the form of debt, to finance the project. Oracle has leased the facility for 15 years. It will make the data center's computing capacity available to OpenAI for use in AI projects. The companies teamed up after the ChatGPT developer ended an exclusive cloud hosting agreement with Microsoft Corp., one of its largest investors, last year. The GB200 Grace Blackwell chip that will power the data center can run large language models using up to 25 times less electricity than its predecessor. It also includes other enhancements. According to Nvidia, the chip uses built-in AI models to anticipate technical issues. Meanwhile, a module known as the Decompression Engine speeds up the task of retrieving information from databases. The chip's two GPUs are made by Taiwan Semiconductor Manufacturing Co. using a modified version of its N4P process. N4P is a heavily-upgraded iteration of the company's five-nanometer node. During the chip manufacturing workflow, transistors are etched into processors using beams of laser light. Those laser beams are not projected directly onto the processors but first go through so-called photomasks. A photomask is a panel that filters some of the light to customize the manner in which transistors are formed. Compared with TSMC's earlier processes, N4P requires fewer chip manufacturing steps that involve a photomask. That increases GPU production speeds, which should make it easier for Nvidia to keep up with demand for its chips.

Oracle Said to Buy $40 Billion of Nvidia Chips for OpenAI's US Data Center

The firms are also working on a Stargate project in the Middle East Oracle will spend around $40 billion on Nvidia's higher-performance chips to power OpenAI's new U.S. data center, the Financial Times reported on Friday. The data center, situated in Abilene, Texas, is part of the U.S. Stargate Project, led by top AI firms in the country, to boost America's heft in the artificial intelligence industry amid heating global competition. The cloud service provider will purchase around 400,000 of Nvidia's most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter. OpenAI and Oracle did not immediately respond to Reuters' requests for comment, while an Nvidia spokesperson declined to comment. The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said. JPMorgan has provided a bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and U.S. investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added. The data center will help OpenAI reduce its dependence on its largest backer Microsoft as the ChatGPT maker's demand for power has outstripped the supply Microsoft can provide. For Oracle, the data center and Stargate present an opportunity for the firm to boost its cloud computing capabilities and catch up to market leaders Microsoft, Amazon and Google. OpenAI, Oracle, and Nvidia are also involved in a Stargate project in the Middle East, where a new massive AI data center will be constructed in the United Arab Emirates, likely using over a hundred thousand Nvidia chips. The first phase of the UAE data center will come online in 2026. © Thomson Reuters 2025

Oracle to buy $40 billion of Nvidia chips for OpenAI's US data center: Report

The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said. JPMorgan has provided a bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and U.S. investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added.Oracle will spend around $40 billion on Nvidia's higher-performance chips to power OpenAI's new U.S. data center, the Financial Times reported on Friday. The data center, situated in Abilene, Texas, is part of the U.S. Stargate Project, led by top AI firms in the country, to boost America's heft in the artificial intelligence industry amid heating global competition. The cloud service provider will purchase around 400,000 of Nvidia's most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter. OpenAI and Oracle did not immediately respond to Reuters' requests for comment, while an Nvidia spokesperson declined to comment. The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said. JPMorgan has provided a bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and U.S. investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added. The data center will help OpenAI reduce its dependence on its largest backer Microsoft as the ChatGPT maker's demand for power has outstripped the supply Microsoft can provide. For Oracle, the data center and Stargate present an opportunity for the firm to boost its cloud computing capabilities and catch up to market leaders Microsoft, Amazon and Google. OpenAI, Oracle, and Nvidia are also involved in a Stargate project in the Middle East, where a new massive AI data center will be constructed in the United Arab Emirates, likely using over a hundred thousand Nvidia chips. The first phase of the UAE data center will come online in 2026.

Oracle To Spend $40 Billion On Nvidia GB200 Chips For OpenAI's Texas Data Center: Report - Apple (NASDAQ:AAPL), JPMorgan Chase (NYSE:JPM)

Oracle Corp. ORCL reportedly plans to spend approximately $40 billion to purchase 400,000 of Nvidia Corp.'s NVDA GB200 AI "superchips" to power a massive new data center for OpenAI in Abilene, Texas. What Happened: The site is part of Stargate, a $500 billion AI infrastructure project spearheaded by OpenAI and SoftBank Group Corp. SFTBF SFTBY. Once completed, the facility will deliver 1.2 gigawatts of power, making it one of the largest AI data centers globally, according to a report by the Financial Times, citing several people familiar with the matter. Oracle will lease the site for 15 years and provide compute capacity to OpenAI, which no longer relies exclusively on Microsoft Corp. MSFT for infrastructure support. The Texas facility is being developed by Crusoe and Blue Owl Capital, with more than $15 billion in debt and equity raised, including a total of $9.6 billion loan from JPMorgan Chase & Co. JPM. See Also: Marvel Delays Robert Downey Jr. Starrer 'Avengers: Doomsday' And 'Secret Wars' To December 2026, But Disney Has A Summer Blockbuster In Store Construction began in June 2024, and the center is expected to be fully operational by mid-2026. Once finished, its scale will be comparable to Elon Musk's proposed expansion of his "Colossus" data center in Memphis, Tennessee, which aims to accommodate around 1 million Nvidia chips. Why It's Important: Previously, OpenAI relied heavily on Microsoft's Azure cloud platform. However, earlier this year, the two companies agreed to end their exclusivity deal after OpenAI's compute needs began to outpace Microsoft's capacity, the report added. Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Earlier this week, it was also reported that OpenAI is acquiring Jony Ive's AI device startup, io Products, in a $6.5 billion all-stock deal. Ive, known for designing the iPhone and other iconic Apple Inc. AAPL products, will join forces with OpenAI to develop AI hardware. Price Action: Oracle shares dipped 0.013% in after-hours trading, reaching $155.95 at the time of writing, after falling 0.85% during regular trading hours on Friday, according to Benzinga Pro. Benzinga Edge Stock Rankings gives Oracle a growth score of 31.75%, highlighting the company's solid market momentum. Click here to see how it compares to other stocks. Read Next: What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Sundry Photography / Shutterstock.com AAPLApple Inc$195.85-2.74%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum46.18Growth33.12Quality76.88Value8.65Price TrendShortMediumLongOverviewJPMJPMorgan Chase & Co$260.20-0.18%MSFTMicrosoft Corp$450.50-0.96%NVDANVIDIA Corp$131.17-1.25%ORCLOracle Corp$155.95-0.86%SFTBFSoftBank Group Corp$62.2717.3%SFTBYSoftBank Group Corp$25.93-0.12%Market News and Data brought to you by Benzinga APIs

Oracle to Buy $40 Billion Worth of Nvidia Chips for First Stargate Data Center | PYMNTS.com

The company will buy 400,000 of Nvidia's latest "superchips" for training and running artificial intelligence (AI) systems, the GB200 chips, and lease the computing power they provide to OpenAI, the Financial Times (FT) reported Friday (May 23). The data center is expected to be fully operational by the middle of 2026 and will be one of the largest data centers in the world, providing 1.2 gigawatts of power, according to the report. President Donald Trump announced Stargate in January, saying the up-to-$500 billion project aims to build big AI-focused data centers in the U.S., with the first 10 being in Texas. Oracle, OpenAI, SoftBank and MGX are equity partners in Stargate, while Oracle, Arm, Microsoft, Nvidia and OpenAI will be the project's initial technology partners. It was reported Wednesday (May 21) that the Abilene data center had secured $11.6 billion in funding commitments and that the funding would expand the data center to eight buildings from two and bring the total amount secured for the project to $15 billion. AI data centers are needed because traditional data centers and power grids are struggling to accommodate the intense computational power, data storage and energy required by AI, PYMNTS reported in January. "AI data centers are fundamentally different because they require specialized hardware and infrastructure to handle the massive parallel processing needed for AI workloads," Deborah Perry Piscione, co-founder of Work3 Institute, an AI and Web3 advisory firm, told PYMNTS in January. "Traditional data centers focus on storage and basic compute, while AI facilities need dense configurations of GPUs and AI accelerators, like Nvidia's H100s, designed specifically for the complex matrix calculations that power AI models," she added. In March, Elon Musk's xAI and Nvidia joined the $30 billion AI Infrastructure Fund backed by BlackRock, Microsoft and MGX. The Fund's ultimate goal is to raise up to $100 billion for AI development. Microsoft and BlackRock launched the fund last year, aiming to raise money to construct data centers and find sources of power for those facilities.

Oracle to buy $40B of Nvidia chips for OpenAI's US data center: report

The data center, situated in Abilene, Texas, is part of the US Stargate Project, led by top AI firms in the country, to boost America's heft in the artificial intelligence industry amid heating global competition. The cloud service provider will purchase around 400,000 of Nvidia's most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter. OpenAI and Oracle did not immediately respond to Reuters' requests for comment, while an Nvidia spokesperson declined to comment. The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said. JPMorgan has provided a bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and US investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added. The data center will help OpenAI reduce its dependence on its largest backer Microsoft as the ChatGPT maker's demand for power has outstripped the supply Microsoft can provide. For Oracle, the data center and Stargate present an opportunity for the firm to boost its cloud computing capabilities and catch up to market leaders Microsoft, Amazon and Google. OpenAI, Oracle, and Nvidia are also involved in a Stargate project in the Middle East, where a new massive AI data center will be constructed in the United Arab Emirates, likely using over a hundred thousand Nvidia chips. The first phase of the UAE data center will come online in 2026.

Oracle to spend $40 billion on Nvidia chips for OpenAI data center - FT By Investing.com

Investing.com -- Oracle Corporation (NYSE:ORCL) plans to invest approximately $40 billion in high-performance chips from NVIDIA Corporation (NASDAQ:NVDA) to power OpenAI's new AI-focused data center in Texas, according to a report from The Financial Times. The move underscores the accelerating arms race among tech giants to secure the infrastructure needed to support next-generation artificial intelligence models. The facility, located in Abilene, Texas, is part of a $500 billion initiative led by OpenAI and SoftBank Group. As the first Stargate U.S. site, the data center is expected to support 1.2 gigawatts of computing power when fully operational by mid-2026. Oracle intends to acquire roughly 400,000 of Nvidia's GB200 chips, the company's most advanced processors for AI training and inference. Rather than operate the center directly, Oracle will lease the computing capacity to OpenAI under a reported 15-year agreement. The Texas site will be among the world's largest when completed, solidifying both Oracle's and OpenAI's ambitions in large-scale infrastructure. The announcement follows a separate collaboration unveiled this week between the three companies, alongside G42, SoftBank Group Corp. (TYO:9984), and Cisco Systems Inc (NASDAQ:CSCO), to build Stargate UAE, a 1-gigawatt AI cluster headquartered in Abu Dhabi. The UAE facility will be housed within the larger UAE-U.S. AI Campus and is designed to support global-scale AI advancement across industries. As chip demand surges, Oracle's multi-year investment signals confidence not only in Nvidia's hardware but also in OpenAI's ability to lead the next era of compute-intensive applications. "AI is the most transformative force of our time," said Nvidia CEO Jensen Huang earlier this week. "With Stargate, we are building the infrastructure to power the future."

Oracle to buy $40 billion of Nvidia chips for OpenAI's US data center, FT reports

(Reuters) -Oracle will spend around $40 billion on Nvidia's higher-performance chips to power OpenAI's new U.S. data center, the Financial Times reported on Friday. The data center, situated in Abilene, Texas, is part of the U.S. Stargate Project, led by top AI firms in the country, to boost America's heft in the artificial intelligence industry amid heating global competition. The cloud service provider will purchase around 400,000 of Nvidia's most powerful GB200 chips and lease the computing power to OpenAI, the report said, citing several people familiar with the matter. OpenAI and Oracle did not immediately respond to Reuters' requests for comment, while an Nvidia spokesperson declined to comment. The data center is expected to be fully operational by mid-next year, and Oracle has agreed to lease the site for 15 years, the report said. JPMorgan has provided a bulk of the debt financing across two loans totaling $9.6 billion, while the site's owners, Crusoe and U.S. investment firm Blue Owl Capital, have invested around $5 billion in cash, the FT report added. The data center will help OpenAI reduce its dependence on its largest backer Microsoft as the ChatGPT maker's demand for power has outstripped the supply Microsoft can provide. For Oracle, the data center and Stargate present an opportunity for the firm to boost its cloud computing capabilities and catch up to market leaders Microsoft, Amazon and Google. OpenAI, Oracle, and Nvidia are also involved in a Stargate project in the Middle East, where a new massive AI data center will be constructed in the United Arab Emirates, likely using over a hundred thousand Nvidia chips. The first phase of the UAE data center will come online in 2026. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)