Oracle's $40 Billion Nvidia Chip Purchase for OpenAI's Stargate Data Center

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 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 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)