In a bold move that could reshape the landscape of artificial intelligence infrastructure, Oracle is set to spend a staggering $40 billion on Nvidia chips to power OpenAI’s next-generation data center in the United States, according to a Financial Times report.
The high-tech facility, currently under development in Abilene, Texas, is part of the U.S. Stargate Project—a strategic initiative aimed at giving America an edge in the global AI race. Leading tech giants, including OpenAI and Oracle, are at the forefront of this endeavor.
The report reveals that Oracle will purchase around 400,000 units of Nvidia’s cutting-edge GB200 chips, designed for ultra-high performance computing tasks. These chips will provide the backbone for OpenAI’s growing demand for compute power, as the ChatGPT creator looks beyond its primary partner, Microsoft, whose existing infrastructure is reportedly struggling to keep up.
Rather than using the chips directly, Oracle will lease out computing power to OpenAI through its cloud services division. The massive investment comes with a 15-year lease agreement on the data center, which is expected to be fully operational by mid-2026.
Backing the project financially is JPMorgan, which has arranged debt financing through two major loans totaling $9.6 billion. The site’s owners, U.S.-based Crusoe Energy and Blue Owl Capital, have also invested an additional $5 billion in equity, underscoring the scale and seriousness of the initiative.
For Oracle, the move represents more than just a financial gamble—it’s a strategic play to catch up with cloud computing titans like Microsoft Azure, Amazon Web Services, and Google Cloud. The Abilene data center could be a key part of Oracle’s broader push to become a dominant player in hosting large-scale AI workloads.
This isn’t Oracle’s only AI infrastructure partnership with OpenAI and Nvidia. All three firms are also working on another Stargate data center project in the UAE, slated to begin operations in 2026. That facility is expected to utilize over 100,000 Nvidia chips, reinforcing the trio’s global ambitions in artificial intelligence.
While representatives from OpenAI, Oracle, and Nvidia have yet to publicly comment on the deal, the implications are clear: the AI arms race is heating up, and Oracle is putting billions on the table to secure its seat at the front of the pack.
