Oracle to Snap Up $40 Billion in Nvidia Chips for OpenAI’s U.S. Supercenter

• Oracle Corp. (ORCL) will invest $40 billion in 400,000 Nvidia Corp. (NVDA) GB200 chips to power OpenAI’s Abilene, Texas data center, part of the Stargate Project, with operations starting mid-2026.
• The project, financed by $9.6 billion from JPMorgan Chase & Co. (JPM) and $5 billion from Crusoe and Blue Owl Capital Inc. (OWL), aims to reduce OpenAI’s reliance on Microsoft Corp. (MSFT).
• Oracle, OpenAI, and Nvidia are also developing a UAE-based Stargate AI data center with over 100,000 Nvidia chips, set to launch in 2026, enhancing global AI infrastructure.

Oracle Corp. (ORCL) is set to invest $40 billion in Nvidia Corp. (NVDA) high-performance GB200 chips to power a new U.S. data center in Abilene, Texas, as part of the Stargate Project, aimed at strengthening U.S. leadership in artificial intelligence, according to the Financial Times. The cloud service provider will purchase approximately 400,000 chips and lease the computing capacity to OpenAI, enabling the ChatGPT developer to reduce reliance on its primary backer, Microsoft Corp. (MSFT), amid surging computational demands. The Abilene facility, expected to be fully operational by mid-2026, is backed by $9.6 billion in debt financing from JPMorgan Chase & Co. (JPM) and $5 billion in cash from site owners Crusoe and Blue Owl Capital Inc. (OWL), with Oracle securing a 15-year lease.

The Stargate Project reflects a broader push to bolster AI infrastructure in response to global competition, with the U.S. facility serving as a cornerstone for OpenAI’s expansion of AI training capabilities. Oracle’s significant investment positions it to enhance its cloud computing offerings, narrowing the gap with industry leaders like Microsoft, Amazon.com Inc. (AMZN), and Alphabet Inc.’s Google (GOOGL). Additionally, Oracle, OpenAI, and Nvidia are collaborating on a parallel Stargate initiative in the United Arab Emirates, where a massive AI data center – powered by over 100,000 Nvidia chips – is set to launch in 2026. This dual-continent strategy underscores the central role of advanced computing in AI development and reflects the intensifying race to lead AI infrastructure.

Despite the scale of these investments, the projects face significant challenges, including high energy costs and supply chain constraints. However, their success could reshape competitive dynamics in the cloud and AI sectors, setting new benchmarks for the industry.

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