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5h ago

Oracle Secures $40 Billion Nvidia Chip Deal for OpenAI's U.S. Data Center

The Stargate Project's Abilene facility, backed by $14.6 billion in financing, aims to bolster U.S. AI leadership and reduce OpenAI's reliance on Microsoft.

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Overview

  • Oracle has finalized a $40 billion purchase of 400,000 Nvidia GB200 chips to power OpenAI’s upcoming Abilene, Texas data center, part of the Stargate Project.
  • The Abilene facility is supported by $9.6 billion in debt financing from JPMorgan and $5 billion in equity from Crusoe and Blue Owl Capital, with Oracle leasing the site for 15 years.
  • The Stargate Project is designed to expand AI compute infrastructure, strengthen U.S. leadership in AI, and diversify OpenAI’s computing sources beyond Microsoft.
  • A parallel UAE-based Stargate data center, featuring over 100,000 Nvidia chips, is also under development with operations planned for 2026.
  • High energy costs and supply chain challenges present potential risks to the project’s timeline and cost management.