Oracle is poised to invest approximately $40 billion in Nvidia’s advanced chips to facilitate the establishment of a new data center for OpenAI in the United States, according to a report from the Financial Times published on Friday.
Located in Abilene, Texas, this data center is part of the U.S. Stargate Project, an initiative spearheaded by leading artificial intelligence companies to enhance the country’s position in the rapidly evolving AI landscape amidst increasing global competition.
The cloud computing giant plans to acquire around 400,000 of Nvidia’s cutting-edge GB200 chips and subsequently lease the processing capabilities to OpenAI, as detailed by sources familiar with the transaction.
Both OpenAI and Oracle did not provide immediate comments in response to inquiries from Reuters, while a spokesperson for Nvidia declined to comment on the matter.
The data center is projected to be operational by mid-2024, with Oracle committing to a 15-year lease for the facility, the report indicated.
JPMorgan is reportedly financing a substantial portion of the investment through two loans totaling $9.6 billion, while the owners of the site, Crusoe and the U.S. investment firm Blue Owl Capital, have contributed around $5 billion in cash, according to the Financial Times.
This new data center is expected to help OpenAI lessen its reliance on Microsoft, its main investor, especially as the demand for computational power has exceeded what Microsoft can currently supply.
For Oracle, this initiative presents an opportunity to enhance its cloud computing services and compete more effectively with industry leaders such as Microsoft, Amazon, and Google.
In a related initiative, OpenAI, Oracle, and Nvidia are also collaborating on a Stargate project in the Middle East, where plans are underway to construct a large-scale AI data center in the United Arab Emirates that will likely utilize over 100,000 Nvidia chips.
The initial phase of the UAE data center is anticipated to become operational in 2026.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
