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4d ago

Oracle Commits $40 Billion to Nvidia Chips for OpenAI’s Texas Data Center

The investment, part of the $500 billion Stargate AI initiative, secures Oracle a 15-year lease on the Abilene site and reduces OpenAI's reliance on Microsoft infrastructure.

Oracle logo on building
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Overview

  • Oracle will purchase 400,000 Nvidia GB200 chips to power OpenAI's Abilene, Texas data center, with operations expected to begin by mid-2026.
  • The $40 billion investment is supported by $9.6 billion in debt from JPMorgan Chase and $5 billion from Crusoe and Blue Owl Capital.
  • The Abilene facility, part of the Stargate Project, will deliver 1.2 gigawatts of power, making it one of the largest AI data centers globally.
  • Oracle, OpenAI, and Nvidia are also collaborating on a UAE-based Stargate data center with over 100,000 Nvidia chips, slated for a 2026 launch.
  • This initiative strengthens U.S. AI infrastructure leadership and diversifies OpenAI's partnerships, reducing its dependence on Microsoft's Azure cloud platform.