Oracle is set to invest approximately $40 billion on Nvidia’s high-performance computer chips to power OpenAI’s new giant US data centre, according to a report from the Financial Times.
The facility, located in Abilene, Texas, is part of the first U.S. “Stargate” project, a $500 billion initiative led by OpenAI and SoftBank. Upon completion next year, the data center is expected to deliver 1.2 gigawatts of power.
Sources familiar with the matter told FT that Oracle plans to purchase around 400,000 units of Nvidia’s cutting-edge GB200 chips, designed specifically for training and deploying AI models and lease the computing power to OpenAI.
Tabby Kinder and George Hammond from FT notes that although Stargate was incorporated earlier this year, it has not made a direct investment in this particular data center. The Abilene site is projected to become fully operational by mid-2026, with Oracle having secured a 15-year lease for the location. This development marks a strategic shift for OpenAI as it looks to lessen its reliance on Microsoft, which has been its primary cloud provider. Microsoft’s investment of nearly $14 billion in OpenAI has largely come through cloud services.
So far, OpenAI and SoftBank have each pledged $18 billion to the Stargate venture. Oracle and Abu Dhabi’s sovereign wealth fund, MGX, have also committed $7 billion each, according to sources familiar with the financing.
